Aniket Pujari
TL:DR;
- The crypto market experienced a severe downturn in the past week or so, with many altcoins registering double-digit declines over that period.
- The difference between XRP and ETH is narrower now, but that’s mostly because of the latter’s failure during this bull cycle.
Smaller Difference
CryptoPotato asked the same question the popular AI chatbot two months ago when XRP’s market capitalization stood at $140 billion as the asset fought USDT for the third spot, while ETH’s was $480 billion, with a price tag of roughly $4,000.
A lot changed in the following months. XRP’s run continued with a massive surge to $3.39 in mid-January, which actually matched the 2018 all-time high of $3.4 (on CoinGecko), but the asset failed to break it. The subsequent rejection and market-wide retracements have pushed Ripple’s cross-border token down to $2.4 at press time, with a market cap of $139 billion – which is essentially the same as the previous article.
ETH’s performance, though, has been quite underwhelming. The biggest altcoin peaked at just over $4,000 on a couple of occasions in December but failed to maintain its run, let alone go toward its all-time high of $4,880. The most recent corrections hit it hard, with its price tumbling to $2,200 on Monday morning. Although it now sits above $2,600, ETH’s market cap has plunged hard since the first article and is down to $315 billion.
This puts the difference between the two at a more modest $175 billion, which is a lot less than the $340 billion in early December. However, most of that is due to ETH’s crash rather than XRP actually charting permanent gains.
What About Now?
Back then, ChatGPT listed several factors that could propel XRP toward the second spot – market conditions, which have worsened since then, especially for ETH; regulatory clarity – still pending during the new US administration; tech developments – Ethereum is close to a big upgrade called Pectra, as well as broader crypto trends – somewhat vague.
During its most recent response, the AI chatbot highlighted the regulatory clarity once again. It asserted that the resolution of the ongoing SEC v. Ripple lawsuit is essential to XRP’s price movements. A favorable outcome for the company, which is highly possible now, given the pro-crypto administration, could skyrocket the token’s price and vice-versa. In fact, ChatGPT believes there won’t be a big run for XRP until there’s clarity in that lawsuit.
Another factor that could help XRP on its way up is the potential involvement of Ripple’s CEO (or other execs) in the crypto regulatory groups within the US.
In terms of institutional adoption, ChatGPT gave the lead to ETH, which has a fair share of exchange-traded funds. The products saw the light of day in the middle of 2024 and have enjoyed a reasonable demand for the past few months. However, XRP could be next in line for an ETF, and that could bring more gains for the underlying asset.
Lastly, the AI project outlined a significant difference between the two blockchains in regard to speed and fees, which is a point for XRP.
- Ripple: ~3-5 seconds per transaction, negligible fees.
- Ethereum: Slower, gas fees remain an issue despite upgrades.
ChatGPT concluded that while Ripple and its token have some advantages over Ethereum and ETH, such as payment speed and certain financial partnerships, the possibility of the former surpassing the latter is “unlikely,” unless “Ethereum stumbles” even more.
