XRP outshines Ether in FDV as DeFi adoption accelerates
XRP outshines Ether in FDV
XRP has overtaken Ether (ETH) in fully diluted valuation (FDV), marking a significant shift in the blockchain landscape as decentralized finance (DeFi) adoption on the XRP Ledger gains momentum.
As of March 14, XRP’s FDV stood at nearly $235 billion, surpassing Ether’s by more than $1 billion, according to Cointelegraph.
While Ethereum remains the largest smart contract platform by market capitalization, XRP’s recent surge highlights shifting market dynamics driven by regulatory clarity and increasing institutional engagement.
Institutional support and regulatory clarity fuel growth
XRP’s rise follows a 300% price increase since Donald Trump’s election victory in November. The former president has positioned the United States as a potential global crypto leader, appointing industry-friendly regulators and outlining a plan to include XRP in a proposed U.S. Digital Asset Stockpile.
Ripple Labs, the primary developer behind XRP, has also benefited from improving regulatory conditions. The U.S. Securities and Exchange Commission (SEC) is reportedly finalizing its long-running enforcement action against the firm, mirroring a broader softening stance toward major crypto entities.
Meanwhile, XRP’s native decentralized exchange (DEX) has processed over $1 billion in transactions since launching in 2024, signaling growing adoption in institutional DeFi.
Ethereum faces mounting competition
While XRP thrives, Ethereum continues to face pressure from rival layer-1 blockchains, particularly Solana, which has attracted significant trading volume. Since Ethereum’s Dencun upgrade reduced transaction fees by 95% in March 2024, its price has struggled to gain momentum, and competition from alternative networks has intensified.
As DeFi adoption accelerates, XRP’s trajectory suggests a growing appetite for blockchain solutions catering to institutional and enterprise use cases. Whether Ethereum can reclaim its lead in FDV remains to be seen.
Legal experts predict the Ripple vs. SEC litigation could conclude by mid-2025. Ripple attorney Jeremy Hogan suggests a settlement or dismissal is likely by April or May 2025.
