XRP may overtake ETH if ETFs and Ledger integration are approved.

The XRP has been losing momentum in spite of headlines such as the SEC’s decision. 

RippleXRP() traded at $2 Friday, down by 41% from the highest level of this year. Its market capitalization dropped from $190 to $118 Billion.

There are increasing odds that XRP could overtake Ethereum.ETHThe price of, whose value has plummeted by 61%. We have seen predicted, Ether’s price is expected to drop below $1,000 in 2018. 

This year, the price movement has reduced the difference between their respective market capitalizations to only $45 Billion. Here are the main catalysts for XRP to surpass Ethereum’s valuation.

XRP Ledger growth

The XRP Ledger, a network that is decentralized, open-source, and designed to facilitate fast, low cost transactions, could be the catalyst for XRP’s rise. It offers faster transaction speeds and lower costs than Ethereum.

There are two potential catalysts that could boost the XRP Ledger. First, Ripple Labs acquired Hidden Road This week, a deal worth $1.25 billion was signed. Hidden Road handles over $10 billion of daily volumes.

RippleLabs is likely to migrate the existing payment infrastructure over to the XRP Ledger. A move like this would turn it into one of most active networks within the crypto industry.

Additionally, Brad Garlinghouse Ripple CEO, Brad Garlinghouse has described his plans to compete with SWIFT. SWIFT is the world’s largest payment network and processes $150 trillion in annual payments. The disruption is more likely to happen now that SWIFT has been weakened. SEC has ended its case.

Garlinghouse claims that Ripple’s technology is more efficient and cost-effective than SWIFT. Successful implementation would increase XRP Ledger Activity and help support the long-term growth of prices.

Ethereum’s network is stagnating and relying more on layer-2 competitors.

XRP ETF approved

A possible approval of XRP by the Securities and Exchange Commission is another potential catalyst. The Securities and Exchange Commission could approve XRP ETF. PolymarketThe market has high expectations, as the approval odds have increased to 76%.

This approval may lead to new institutional demand. Analysts at JPMorgan project that these ETFs will bring $8 billion to the market in their first year. This would boost XRP’s value.

Since September, the total amount of money invested in all Ethereum spot ETFs has been $2.6 billion. Recent outflows are also increasing.

The XRP Price has Supporting Technicals

After forming a three-top pattern and a deathcross, the technicals of Ethereum are weak. This indicates that there will be more decline.

XRP has technical support, which signals a potential rebound. On the chart for the week, the coin has fallen and then retested $2, the upper limit of the cup and handle. It is considered to be a signal of bullish momentum.

XRP is also above the 50-week average and its 100-week average. If it continues to gain momentum, XRP could test the high for the year so far of $3.4. It may then go on to move up towards $3.70 – the target price of the cup handle pattern – and ultimately reach $5.