Co-founder of Omni Foundation, Austin King, shared his opinion that Ethereum (ETH) might lose its position as the second-largest cryptocurrency by market capitalization. He stated that XRP has a strong chance of surpassing ETH in the near future.
Trust Issues with Ethereum
According to King, the situation with Ethereum is unstable. ETH previously gained an advantage due to its deflationary nature, where the number of coins in circulation gradually decreased. However, now Ethereum has become reliant on Layer 2 solutions for scalability, which King believes weakens trust in the network.
"Many of these solutions work on centralized infrastructure rather than fully decentralized platforms, which also raises concerns about Ethereum's long-term viability," he said.
Price Dynamics and Competition with XRP
King noted that, unlike Bitcoin (BTC), which continues to set records, ETH's price has failed to surpass its previous highs, even after the approval of spot ETFs for Ethereum in the U.S. He added that the price stagnation in ETH led him to believe that XRP could become a strong competitor to Ethereum.
His assumption is based on the fact that XRP is actively used in international payments thanks to Ripple's ODL payment solution, which allows for fast and cheap transactions. Also, unlike Ethereum, XRP’s supply is limited to a fixed volume of 100 billion coins, which King believes prevents inflation risks.
Amid this, news surfaced that the SEC began considering Grayscale's applications for creating cryptocurrency ETFs for XRP and Dogecoin. In response, XRP rose by 11% and immediately became the leader in spot purchases across all centralized exchanges (CEX). The SEC now has 240 days to decide on these applications, which could impact XRP's future price.
Also Read:
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