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$XRP price could soar to greater heights if $XRP dominance surpasses its all-time high to reach the 40% region.
$XRP, which was once the second dominant crypto asset by a large mile, has since relinquished its position. For context, from October 2014, two years after the $XRP Ledger launched, $XRP overtook Litecoin (LTC) to become the second-largest crypto asset.
$XRP Dominance Has Witnessed a Rollercoaster Ride
It mostly maintained this position until early 2016, when it began to battle Ethereum (ETH) for the spot. Meanwhile, data from TradingView indicates that $XRP dominance soared from 2014 to 2015, rising from 0.35% in July 2014 to a peak of 20.69% by January 2015. This occurred as $XRP became the second-largest crypto asset.
However, during the battle with Ethereum for the second spot, the $XRP dominance saw gradual declines. Specifically, dominance collapsed to a low of 0.95% by March 2017, especially as $XRP underperformed at the start of the 2017 bull run, pushing it lower the top 10 rankings.
Interestingly, $XRP’s dominance recovered from March 2017 as $XRP observed its historic run. Dominance soared to a new high of 31.33% amid the $XRP rally to $3.8. This 31.33% marked the peak dominance for $XRP, and since then, the metric saw intermittent declines until it hit 1.21% in early November 2024.
Current Market Position
Now, with the $XRP price rebounding beyond the $0.5 on the back of the U.S. elections last November, $XRP dominance soared to a four-year peak of 5.58% by January. Despite a drop alongside $XRP’s price pullback to the $2 lows, dominance currently sits at 3.97%.
However, some $XRP market commentators believe $XRP dominance could soar beyond the 31.33% peak to reach a new all-time high of 40%. Before this can happen, $XRP would need to capture a lot of the market share from Ethereum and Bitcoin.
For context, Bitcoin dominance currently sits at 64.15%, the largest for any single crypto asset. Meanwhile, Ethereum dominance stands at 9.71%, the second largest. At these dominance figures, Bitcoin has a market cap of $314.5 billion, while Bitcoin boasts a valuation of $2.08 trillion.
$XRP Price if $XRP Dominance Soars to 40%
With its 3.97% market dominance, $XRP has a market cap of $128.51 billion. However, should it claim 40% dominance, its market cap would soar tremendously. Specifically, with the global crypto market boasting a market cap of $3.24 trillion, a 40% dominance would place $XRP’s valuation at $1.296 trillion.
Meanwhile, $XRP currently has a circulating supply of about 58.75 billion tokens. Considering this supply, a $1.296 trillion market cap translates to a price of $22.06 per $XRP. Notably, market pundits like Oscar Ramos have projected that $XRP could hit $22 with a $1 trillion market cap.
However, while an $XRP rally to $22 is highly feasible, capturing 40% of the crypto market might be challenging. As a result, if $XRP maintains its market dominance while the broader crypto market expands considerably, $XRP could reach the $22 price without having to capture 40% of the market.
For context, for $XRP to hold a $1.296 trillion market cap and a $22 price while at 3.97% dominance, the broader crypto market needs to expand to $32.65 trillion. Interestingly, a July 2023 Forbes report projected that crypto ETFs could inject $30 trillion in capital into the crypto market.