Standard Chartered has predicted that XRP will overtake Ethereum in market capitalization by the end of 2028.
This would establish XRP as the second-largest digital asset, excluding stablecoins.
Analyst’s Bold Projection for XRP
Geoffrey Kendrick, Standard Chartered’s head of digital assets research, articulated this ambitious forecast.
He emphasizes XRP’s expanding importance in facilitating international payments as a crucial factor in the cryptocurrency market’s evolving landscape.
NYSE Approval Signals Mainstream Interest
This announcement coincides with the New York Stock Exchange’s approval of a new exchange-traded fund that leverages XRP, signaling increasing interest in XRP from mainstream investors.
XRP’s Core Utility Driving Growth
In a communication with Benzinga, Kendrick elaborated on XRP’s potential to outperform Ethereum in the coming years.
He stated, “We anticipate XRP’s market capitalization exceeding Ethereum’s by the end of 2028,” attributing this projected shift to XRP’s fundamental role as a platform for cross-border and multi-currency payment processing.
Kendrick highlighted the consistent growth in transaction volumes within the cross-border payments sector of the digital asset market.
Standard Chartered expects this trend to continue, consequently bolstering XRP’s value proposition.
XRP Outperforming Ethereum in Digital Asset Landscape
According to Kendrick’s analysis, XRP, along with Bitcoin and Avalanche, is identified as a leading performer in the digital asset space.
In contrast, Ethereum is considered to be relatively underperforming compared to these assets.
“XRP’s primary application lies in serving as a platform for cross-border and cross-currency transactions,” Kendrick affirmed, underlining its practical use case as a primary catalyst for its anticipated growth.
He further suggested that Bitcoin’s robust performance during recent market volatility, including concerns related to global tariffs, indicates a broader positive trend for cryptocurrencies.
XRP is expected to gain considerably from this overall upward momentum.
Leveraged XRP ETF Launches, Boosting Price
This prediction emerges as XRP gains greater recognition within established financial markets.
The NYSE’s approval of the Teucrium 2x Long Daily XRP ETF (XXRP), slated to launch on April 8th, marks a significant development.
This leveraged ETF aims to generate twice the daily price fluctuations of XRP through swap agreements.
It represents a landmark as the first ETF in the U.S. linked to XRP.
Unlike spot ETFs that directly hold the underlying asset, XXRP tracks XRP’s daily price movements indirectly.
This provides investors with an alternative method to engage with the asset’s price fluctuations.
Following this announcement, XRP’s value experienced an approximate 11% surge, reaching $1.96 according to data from Coingecko.
Focus on Cross-Border Payments Differentiates XRP
Standard Chartered’s perspective reflects their belief in XRP’s capacity to capitalize on its specialized function in enabling efficient global transactions.
This utility differentiates it from Ethereum’s wider focus on smart contracts and decentralized applications.
Regulatory Landscape and ETF Dynamics
While the U.S. Securities and Exchange Commission has not yet approved any spot XRP ETFs, they have acknowledged several filings this year, suggesting potential progress in regulatory approvals.
Bloomberg ETF analyst Eric Balchunas commented on the unusual circumstance of a leveraged ETF preceding a spot ETF, noting its rarity in the digital asset domain.
The XXRP fund has an annual expense ratio of 1.85%, reflecting the operational costs associated with its derivative-based investment strategy.
Long-Term Investment Perspective Advised
Kendrick advised investors to maintain a long-term investment horizon despite short-term market fluctuations.
“Continue to identify promising assets and hold onto your current investments.
The tariff-related market disruption will soon subside, and Bitcoin’s strong performance during this period signals an upcoming market upswing for the asset class,” he recommended.
Also Read: XRP Network Demonstrates Significant Activity Reduction
