- XRP’s 37.3% weekly increase ensured that XRP would surpass Solana in market capitalization.
- Legal clarity, whaling activity, and cross-border usability are fueling XRP’s impressive rally
XRP is about to surpass Solana [SOL] As far as market capitalization is concerned, an important milestone is long overdue, according to many.
With Solana facing its own challenges, XRP appears to be taking full advantage of a shift in market sentiment, with prices rising in recent weeks.
This rapid rise has sparked renewed interest and raised questions about the factors driving XRP’s momentum. Is this a temporary spike, or could XRP position itself for a more sustained rally?
XRP moves closer to surpassing Solana
Source: CoinMarketCap
XRP’s bullish rally to $1.92 (+37.3% per week) has put it on the verge of overtaking Solana market capitalizationnarrowing the gap to just $3.2 billion.
Recent data highlighted XRP’s bullish momentum, with significant volume highs and consistently higher lows since mid-November, indicating strong accumulation.
In contrast, Solana remained within the $237 range, with a modest daily gain of 0.51%, while struggling against the key resistance at $240.
Source: TradingView
XRP’s rapid rise is mirrored by increasing daily volumes as reflected in the charts, while Solana’s activity shows signs of cooling off.
If this gap holds, XRP’s market cap of $109.4 billion could soon eclipse that of Solana’s $112.67 billion, which would mark a major milestone for the asset in its revival.
Key Drivers Behind XRP’s Surge
XRP’s momentum is driven by recent legal clarity in its favor, boosting investor confidence.
The court’s favorable ruling on XRP’s non-security status has revived institutional interest, evidenced by rising daily trading volumes.
Additionally, its utility in cross-border payments, combined with Ripple’s growing partnerships in Asia and the Middle East, continues to drive adoption.
Statistics on the chain show increased whale activity, with significant wallet build-ups observed over the past month.
At the same time, there is a broader market shift towards altcoins amid that of Bitcoin [BTC] consolidation above $99,000 has broadened XRP’s appeal. Technical indicators are showing a major contribution to XRP’s rally.
The RSI has risen to 86, indicating extremely bullish momentum. This indicates an overbought situation, which is often accompanied by strong upward trends and optimism among investors.
The sharp price increase was also accompanied by an increase in daily trading volumes, reflecting increased market participation.
Can XRP keep up the pace?
If XRP is to maintain its momentum and officially surpass Solana, several factors will be critical.
While the RSI points to overbought conditions, signaling a possible cooldown, growing trading volumes and whale activity indicate that bullish sentiment remains strong.
If Bitcoin continues to consolidate and altcoin dominance increases, XRP could continue its trajectory.
Realistic or not, here is the XRP market cap in terms of BTC
The potential market cap reversal could also lead to further rotation into XRP from other assets, reinforcing the rally. However, Solana’s robust ecosystem and upcoming developments could challenge XRP’s lead.
Still, its strong fundamentals and increased investor interest suggest the asset is well-positioned to capitalize on this opportunity, potentially marking a crucial shift in the altcoin market hierarchy.