Contrary to this, XRP has shown relatively muted price movements. Although there were some instances of strength in XRP, Solana’s consistent upward momentum overshadowed its growth trajectory. The ability of SOL to maintain high trading volumes and attract investor interest signals a stronger foundation or market sentiment.
With SOL approaching XRP’s market capitalization, the divergence in their price trends could indicate a broader shift in investor preferences, particularly towards assets that offer high scalability and robust ecosystem development.
Metrics Reflect Mixed Signals Amid Price Stability
Examining the chart, XRP’s price stability contrasts with the fluctuating on-chain metrics.
For example, the Realized Cap HODL Waves demonstrated a notable decrease in short-term holders, implying reduced speculative trading. On the other hand, mid-term holders showed moderate accumulation, suggesting some confidence in holding XRP despite limited price momentum.
Furthermore, the supply on exchanges has remained high, indicating potential selling pressure or investor reluctance to transfer tokens off trading platforms. Additionally, the MVRV Z-Score, gauging overvaluation or undervaluation, appeared to be in a neutral state — indicating indecisiveness in the market sentiment.
When combined, these metrics portray a market at a standstill for XRP, lacking clear bullish or bearish signals. In contrast, Solana’s more favorable on-chain data and price performance could give it an advantage in potentially surpassing XRP in market capitalization.
Is Solana Poised to Overtake XRP?
Solana’s consistent price recovery, strong trading volumes, and positive on-chain metrics reflect a market sentiment heavily favoring SOL. Meanwhile, XRP is encountering challenges with its stable price action and conflicting on-chain indications, such as the increased supply on exchanges and the decreasing activity among short-term holders.
The outcome of this competition may depend on broader market trends, ecosystem advancements, and investor sentiment. If Solana can sustain its upward trend and leverage its scalability and network activity, overtaking XRP may be on the horizon.