XRP, once considered a lagging altcoin, has recently shown impressive growth, surpassing its 2021 price peak and reclaiming the $100 billion market cap. As of December 2024, XRP is positioning itself to challenge Ethereum for the coveted second spot in the cryptocurrency market by capitalization, a position it held briefly during 2017 and 2018 before the SEC lawsuit against Ripple.

XRP’s market cap has surged to approximately $160 billion, allowing it to surpass Binance Coin (BNB), Solana (SOL), and Tether (USDT), making it the third-largest cryptocurrency. However, to reclaim the second spot, it must overcome Ethereum’s current market cap of $439.6 billion, which means XRP would need to hit a price of around $7.71, representing a rally of less than 200% from its current price of $2.75.

The Path to $7.71

To understand how XRP can flip Ethereum, it’s important to look at the current market cap dynamics. With 57.051 billion XRP tokens in circulation, the coin would need to achieve a $440 billion market cap to surpass Ethereum. This translates to a price of $7.71 per token. Given that XRP recently achieved a 283% increase in November 2024, replicating such growth would put it on track to hit the target price.

Comparing this to the 2017 bull run, when XRP surged nearly 60,000% from early 2017 to its all-time high of $3.40 in January 2018, the current rally is not far behind. XRP’s surge in November 2024 mirrors some of its earlier momentum, which has many analysts speculating that another substantial rally could be on the horizon. During the 2017-2018 bull market, XRP experienced massive price jumps in consecutive months, and if it repeats even a fraction of this, it could easily approach the $7 target.

Market Conditions and Potential Challenges

While XRP’s growth has been nothing short of remarkable, surpassing Ethereum would not be an easy feat. Ethereum, the second-largest cryptocurrency by market cap, would likely see its own price increases, potentially offsetting XRP’s gains. If Ethereum experiences significant growth in tandem with XRP’s rise, the altcoin might need to exceed its $7 target to maintain its position above ETH.

Additionally, XRP’s success in surpassing Ethereum relies on broader market conditions, including institutional interest and regulatory clarity. Ripple’s ongoing battle with the SEC has also added layers of uncertainty to XRP’s future, but despite these challenges, the coin’s recent bullish momentum has convinced many investors that it can reach new highs.

Can XRP Maintain the Momentum?

Given the volatility of the cryptocurrency market, there is no guarantee that XRP’s rally will continue uninterrupted. Should the market experience a downturn, XRP’s price could retrace to lower levels, potentially halting its climb toward $7. Nonetheless, XRP has shown resilience, and its community remains confident in its potential. Furthermore, XRP’s recent achievement of surpassing its 2021 price peak and breaking its previous market cap records suggests that its bullish trend could continue if momentum remains strong.

In conclusion, XRP could very well reach new heights and challenge Ethereum for the second spot in the cryptocurrency rankings. With the right combination of price action, market sentiment, and potential regulatory clarity, XRP has the chance to secure a place among the top two cryptocurrencies, but it will need to overcome significant hurdles to achieve that goal.