XRP’s FDV tops $240 billion as Ethereum struggles below $2K

XRP has overtaken Ethereum in fully diluted valuation (FDV) for the first time since 2020 after ETH dropped below $2,000. According to data from Token Terminal, XRP’s FDV has now surpassed $240 billion, taking it above ETH’s $231 billion.

This metric measures the value of a project’s total token supply, including the tokens not yet in circulation. While it is not a significant metric, it can show a crypto project’s potential value when all the tokens are circulated.

Ripple XRP FDV is now higher than that of Ethereum. Source: Token Terminal

The rise in XRP’s FDV above ETH is unsurprising, given that Ripple has a far higher supply than ETH. Per CoinMarketCap data, Ripple has a maximum token supply of 100 billion. However, Ethereum does not have a maximum supply as the network issues tokens as staking rewards, but its current total supply is 120.61 million ETH.

Despite XRP’s higher FDV, ETH’s market cap is still almost twice that of XRP. CoinMarketCap data shows that ETH has a market cap of $232.93 billion, far ahead of XRP’s $141 billion.

XRP’s higher FDV is a sign of positive momentum

While the FDV is not the top metric for determining a project’s value, it shows the contrast between XRP and Ethereum’s performance in recent months. Ripple has been on a rollercoaster, gaining 300% after Donald Trump’s win to reach its peak price in January.

Although XRP is down from its peak to around $2.428, it continues to perform well even during a generally rough season for the crypto industry. It is the only major cap token that has seen gains on a year-to-date basis, with a 5% increase in its value since the start of the year.

By contrast, Bitcoin is down 10.64%, ETH has fallen 42%, Solana dropped 30%, BNB fell 15%, and ADA declined 18%, while DOGE and TRX shed 45% and 12%, respectively. Bollinger Bands creator John Bollinger observed XRP performance.

He said:

“Of all the major crypto vehicles Ripple resisted the recent singing of the Siren’s song best. Will it become the new leader?”

Meanwhile, Ripple’s positive momentum looks set to continue. Besides being included among the cryptos to form the United States crypto strategic reserve, Ripple has been enjoying regulatory approval. Dubai Financial Services Authority recently approved the company’s application to provide crypto payments and services, and several institutions have applied to launch an XRP exchange-traded fund.

There are reports that the US Securities and Exchange Commission  (SEC) could soon drop the long-running enforcement action against Ripple. According to the reports, the SEC is discussing considering XRP a commodity.

The SEC has already dropped several enforcement actions against other crypto companies, including Uniswap and Coinbase, and doing the same for XRP could cause a massive surge in the token value.

Ethereum continues to struggle as its price remains stuck below $2k

Meanwhile, it has been the opposite tale for ETH, which has been struggling for months. While there is no clear reason behind ETH price challenges, the leadership crisis within the Ethereum ecosystem and the theft of over $1.4 billion in ETH from Bybit have all contributed to its decline.

However, there have also been massive selloffs, with CryptoQuant CEO Ki Young Ju , noting that there has been record active selling over the past three months. The token is now stuck below $2,000, a level it has not reached since November 2023. It is down 42.49% year to date, and not even the recent gains have had much impact on lifting its price.

With its poor performance, community sentiment around ETH has also reached its lowest level in almost a year with the crowd becoming extremely bearish since the token fell below $2k.

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