XRP Surpasses Ether in Fully Diluted Valuation, Gains 300% Since US Elections

XRP, the native token of the XRP Ledger, has surpassed Ether (ETH) in terms of fully diluted valuation (FDV), marking a significant shift in the market dynamics of layer-1 (L1) blockchain networks. According to data from March 14, XRP's FDV reached nearly $235 billion, surpassing Ether's FDV by over $1 billion. This development highlights the growing traction of XRP Ledger's decentralized finance (DeFi) ecosystem, while Ethereum faces increasing competition from rival L1s such as Solana.

Despite XRP's higher FDV, Ether's market capitalization remains ahead at $233 billion compared to XRP's $136 billion. FDV measures the cumulative value of all existing tokens, including those not yet in circulation, whereas market capitalization only accounts for tokens currently in circulation. Ripple Labs, the developer of XRP, holds a substantial allocation of its native token, contributing to the disparity between FDV and market capitalization.

XRP's price has surged by over 300% since the US elections in November, reaching approximately $2.3 per token. This price increase can be attributed to the favorable regulatory environment in the US, with President Donald Trump expressing support for cryptocurrencies and appointing industry-friendly leadership to key regulatory positions. The thawing regulatory environment is particularly beneficial for XRP, which focuses on enterprise users and recently unveiled an institutional DeFi roadmap in February.

XRP's native decentralized exchange (DEX) has processed over $1 billion in swap transactions since its launch in 2024, further bolstering the token's support. Additionally, Trump's proposal to include XRP in a US Digital Asset Stockpile, alongside other cryptocurrencies like Solana (SOL) and Cardano (ADA), has provided further backing for the token. The stockpile will consist of assets acquired through law enforcement and legal proceedings, with no plans to purchase additional crypto assets.

The US Securities and Exchange Commission is reportedly nearing the conclusion of an enforcement action against Ripple, which has been ongoing since 2020. The regulator has already dropped actions against other crypto firms, including Coinbase, Kraken, and Uniswap. This development could further bolster XRP's market position and investor confidence.

In contrast, Ether's spot price has faced challenges since the Dencun upgrade in March 2024, which reduced transaction fees by approximately 95%. Despite this, trading volume on Solana, which prioritizes fast transaction execution, has rivaled that of Ethereum and its layer-2 scaling chains combined. This competition highlights the evolving landscape of L1 blockchain networks and the increasing pressure on Ethereum to maintain its market dominance.