Ripple’s Q4 2024 XRP Markets report highlights a strong resurgence in on-chain activity, trading volume, and institutional demand.

The last financial quarter marked a critical shift for XRP, as increased adoption and market confidence drove its performance to new highs.

XRPL Hits $1 Billion on DEXs as On-Chain Activity Expands

Transaction count on the XRP Ledger (XRPL) saw a slight 2.86% decline to 167 million in Q4 2024. However, overall engagement on the network surged, according to Ripple’s latest market report.

The Automated Market Maker (AMM) feature, introduced in March, saw a massive surge in swap volume, jumping from $31.23 million in Q3 to $774.15 million in Q4. This increase significantly boosted trading on the XRPL DEX, which expanded from $63.4 million to $1 billion.

Overall, AMM swaps accounted for 77% of total transactions, highlighting their growing influence on the network.

Network adoption also grew to record highs for XRPL. New wallet registrations surged from 140,000 in Q3 to 709,000 in Q4, reflecting a sharp rise in user participation.

Since Trump’s election victory, XRP’s average closing price jumped from $0.55 to $1.43, hitting a peak of $2.80 by the end of December 2024. This rally led to higher transaction fees and token burns, with XRP burned increasing from 592,000 to 724,000 in Q4.

As BeInCrypto reported earlier, meme coin activity also surged on the network. ARMY, an XRP meme coin launched in January, gained a $100 million market cap in days.

Moreover, the issuance of new tokens on XRPL also accelerated. Trustlines grew from 7.3 million to 7.9 million, with 600,000 new connections established. Among these, 37,000 trustlines linked to Ripple’s RLUSD stablecoin, signaling strong early adoption.

Ripple credited this growth to rising XRP prices and the increasing traction of First Ledger, a meme coin launchpad. According to the firm, XRP’s 280% surge in Q4 marked a critical recovery for the asset, which had been weighed down by the SEC’s prolonged legal battle.

“Ripple and the broader XRP ecosystem had been stifled by the SEC’s actions, which artificially manipulated the market, dampened trader confidence, and held back growth. Seven years ago, before the SEC anointed ETH and attacked XRP and Ripple, XRP was the second most valuable digital asset. With regulatory overhang easing, XRP found itself in a new position of strength,” Ripple stated.

XRP Trading Volume Skyrockets After US Election

Ripple pointed out that XRP’s momentum accelerated following the November US presidential election, where pro-crypto candidate Donald Trump secured victory.

This shift triggered a surge in trading volume. Average daily volume skyrocketed from $500 million in October to $5 billion by mid-November and December. On December 2, trading activity reached nearly $25 billion across major platforms.

Binance led XRP’s trading, handling 36% of total spot volume, followed by Upbit Korea at 20% and Coinbase at 9%. Notably, Coinbase’s market share doubled post-election, indicating rising US investor interest in the digital asset.

“After the US election, US exchanges like Coinbase and Kraken managed to get more shares from Bybit or Crypto.com. Nevertheless, Binance, Bybit and Upbit accounted for over 60% of the total traded volume,” Ripple explained.

Meanwhile, the surge in trading volume was largely driven by long-term buyers rather than short-term speculative traders.

This trend reflected the growing confidence in XRP’s future, with investors positioning themselves for sustained growth amid improving regulatory clarity and increasing institutional interest

Solana has experienced exponential growth since it first entered the market as an alternative Layer-1 blockchain. Though the network’s market capitalization is still significantly smaller than Ethereum, its top contender, this gap has shrunk considerably over the years. 

As Solana grows, some wonder whether it will displace Ethereum as the second-largest cryptocurrency behind Bitcoin. In a conversation with BeInCrypto, Juan Pellicer, Senior Research Analyst at IntoTheBlock, said Solana still has to overcome several hurdles before that can occur. 

Following‬‭ Bitcoin,‬‭ Ethereum‬‭ has‬‭ solidified‬‭ its‬‭ position‬‭ as‬‭ a‬‭ leading‬‭ cryptocurrency,‬‭ pioneering‬‭ the‬‭ concept‬‭ of‬‭ smart‬‭ contracts‬‭ and‬‭ establishing‬‭ itself‬‭ as‬‭ the‬‭ dominant‬‭ platform‬‭ for‬‭ decentralized‬‭ applications.‬‭ 

However,‬‭ Ethereum’s‬‭ dominance‬‭ has‬‭ been‬‭ challenged‬‭ by‬‭ the‬‭ emergence‬‭ of‬‭ competitors‬‭ like‬‭ Solana,‬‭ which‬‭ entered‬‭ the‬‭ market‬‭ in‬‭ March‬‭ 2020‬‭ as‬‭ an‬‭ alternative‬‭ layer-1‬‭ blockchain‬‭ network.

While‬‭ Ethereum‬‭ maintains‬‭ a‬‭ significant‬‭ market‬‭ capitalization‬‭ advantage‬‭ over‬‭ Solana,‬‭ this‬‭ advantage‬‭ has‬‭ notably‬‭ shrunk‬‭ over‬‭ the‬‭ years.‬‭ 

Since its launch in March 2020, Solana’s market capitalization reached its first peak in November 2021, when it reached $72.4 billion. One week ago, the token surpassed the $100 billion mark, reaching a new all-time high. 

At the time of writing, Ethereum’s market cap is $392 billion. While its advantage over Solana is significant, some have begun to wonder how long Solana needs to surpass Ethereum. 

As the network exceeds key‬‭ metrics‬‭ like‬‭ daily‬‭ active‬‭ users,‬‭ daily‬‭ transactions,‬‭ and‬‭ the‬‭ number‬‭ of‬‭ new‬‭ addresses‬‭ created‬‭ monthly‬‭, some say 2025 will be the year Solana takes the second-place trophy. 

Though Solana’s success is impressive, according to Pellicer, it still lacks what it takes to overthrow Ethereum. 

“While‬‭ Solana‬‭ may‬‭ continue‬‭ to‬‭ grow‬‭ and‬‭ potentially‬‭ challenge‬‭ Ethereum‬‭ in‬‭ specific‬‭ niches,‬‭ overcoming‬‭ Ethereum’s‬‭ entrenched‬‭ position‬‭ as‬‭ the‬‭ dominant‬‭ platform‬‭ in‬‭ the‬‭ immediate‬‭ future‬‭ is‬‭ still‬‭ unlikely,‬‭ though‬‭ the‬‭ competitive‬‭ landscape‬‭ is‬‭ dynamic and evolving,” he said. 

Pellicer considered many factors before coming to that conclusion.

High Throughput and Low Transaction Costs Maintain Solana’s Competitiveness

‭Solana and Ethereum boast particular strengths that, in turn, attract different audiences. 

Ethereum’s‬‭ continued‬‭ dominance‬‭ is‬‭ largely‬‭ due‬‭ to‬‭ its‬‭ established‬‭ trust,‬‭ widespread‬‭ adoption,‬‭ and‬‭ ongoing‬‭ development‬‭ efforts.‬‭ As‬‭ the‬‭ first‬‭ platform‬‭ to‬‭ enable‬‭ the‬‭ development‬‭ of‬‭ decentralized‬‭ applications,‬‭ Ethereum‬‭ continues‬‭ to‬‭ lead‬‭ the‬‭ market,‬‭ powering‬‭ most‬‭ decentralized finance (DeFi)‬‭ projects‬‭ and‬‭ hosting‬‭ major‬‭ non-fungible token (NFT)‬‭ marketplaces.

“‬‭Ethereum’s‬‭ infrastructure‬‭ is‬‭ unmatched‬‭ in‬‭ economic‬‭ security,‬‭ maintaining‬‭ a‬‭ flawless‬‭ uptime‬‭ record‬‭ since‬‭ inception,‬‭ which‬‭ fosters‬‭ unparalleled‬‭ trust‬‭ for‬‭ institutional‬‭ and‬‭ high-value‬‭ applications.‬‭ Its‬‭ DeFi‬‭ ecosystem‬‭ remains‬‭ the‬‭ most‬‭ mature,‬‭ with‬‭ pioneering‬‭ protocols‬‭ setting‬‭ industry‬‭ standards,‬‭ though‬‭ competitors‬‭ like‬‭ Solana‬‭ are‬‭ rapidly closing the gap with faster, cheaper alternatives,” Pellicer told BeInCrypto. 

Solana’s competitive edge comes from its high throughput and low transaction costs. The network uses two consensus mechanisms: Proof-of-History (PoH) and Proof-of-Stake (PoS). 

The combination of PoS and PoH allows individual nodes to validate the entire blockchain using only a small piece of information. This is possible because PoH creates a verifiable history of transactions, which means a node doesn’t need to be constantly connected to the network to verify its validity. In turn, transaction speeds are much faster.

Originally running on a Proof-of-Work (PoW) consensus mechanism, Ethereum transitioned to PoS in September 2022. Regardless, the network often suffers from congestion and slow transaction speeds.

While‬‭ Ethereum‬‭ can only process‬‭ around‬‭ 15‬‭ transactions‬‭ per‬‭ second,‬‭ Solana‬‭ can handle over 2,600‬‭.

“This‬‭ results‬‭ in‬‭ a‬‭ smoother‬‭ user‬‭ experience,‬‭ particularly‬‭ for‬ high-frequency‬‭ applications‬‭ and‬‭ retail‬‭ users.‬‭ This‬‭ technological‬‭ differentiation,‬ coupled‬‭ with‬‭ effective‬‭ marketing‬‭ and‬‭ a‬‭ vibrant‬‭ ecosystem‬‭ of‬‭ applications‬‭ focused‬‭ on‬‭ speed‬‭ and‬‭ affordability,‬‭ has‬‭ fueled‬‭ Solana’s‬‭ rapid‬‭ growth‬‭ and‬‭ market‬‭ cap‬‭ increase,‬‭ attracting‬‭ users‬‭ and‬‭ projects‬‭ seeking‬‭ alternatives‬‭ to‬‭ Ethereum’s‬‭ higher‬‭ gas‬‭ fees‬‭ and‬‭ slower transaction finality,” Pellicer explained. 

‭However, Ethereum has other advantages that outweigh Solana’s speed.

Ethereum Excels in DeFi

Since its launch in 2015, Ethereum has become a widely used blockchain platform for developers and enterprises.

The platform’s smart contract functionality has enabled the creation of numerous decentralized applications (dApps), contributing to the growth of ecosystems focused on DeFi, gaming, and NFTs. 

Today, Ethereum’s DeFi total value locked (TVL) stands at nearly $124 billion.

“This‬‭ creates‬‭ deep‬‭ liquidity,‬‭ robust‬‭ infrastructure,‬‭ and‬‭ a‬‭ rich‬‭ ecosystem,‬‭ making‬‭ it‬‭ difficult‬‭ for‬‭ newer‬‭ platforms‬‭ like‬‭ Solana‬‭ to‬‭ replicate‬‭ quickly.‬‭ This‬‭ entrenched‬‭ network‬‭ effect‬‭ provides‬‭ Ethereum‬‭ with‬‭ significant‬‭ inertia‬‭ and‬‭ competitive‬‭ advantage,‬‭ as‬‭ users‬‭ and‬‭ developers‬‭ benefit‬‭ from‬‭ the‬‭ existing‬‭ infrastructure,‬‭ community‬‭ support,‬‭ and‬‭ established protocols within the Ethereum ecosystem,” Pellicer said.

A strong driver behind Ethereum’s solid developer base is its use of Solidity as its base programming language. 

Solidity is a language specifically designed for smart contracts and the Ethereum Virtual Machine (EVM). It benefits from a mature ecosystem, extensive tooling, and a large pool of already proficient developers. 

Solana’s core programming language is Rust. This system offers advantages in terms of rapid performance rates and overall safety. 

“While‬‭ Rust‬‭ offers‬‭ advantages‬‭ in‬‭ terms‬‭ of‬‭ execution‬‭ speed‬‭ and‬‭ security,‬‭ it‬‭ has‬‭ a‬‭ steeper‬‭ learning‬‭ curve‬‭ and‬‭ a‬‭ smaller‬‭ developer‬‭ community‬‭ within‬‭ the‬‭ blockchain‬‭ space‬‭ compared‬‭ to‬‭ Solidity.‬‭ This‬‭ difference‬‭ can‬‭ impact‬‭ developer‬‭ adoption‬‭ rates‬‭ and‬‭ the‬‭ types‬‭ of‬‭ applications‬‭ built,‬‭ with‬‭ Ethereum‬‭ attracting‬‭ a‬‭ broader‬‭ range‬‭ of‬‭ developers‬‭ initially,‬‭ while‬‭ Solana‬‭ may‬‭ appeal‬‭ to‬‭ those‬‭ focused‬‭ on‬‭ performance-critical applications and those already familiar with Rust,” Pellicer added.

Ethereum also remains the preferred network for users who prioritize decentralization before speed.

Solana Centralization Concerns

Solana’s validator node requirements, which demand significant hardware investments, can create barriers to entry, potentially leading to a concentration of power within the network among those capable of affording the necessary infrastructure.

While Solana currently has around 2,000 active validators, Ethereum passed the one million benchmark last year– the largest number recorded by any blockchain network. Though Solana’s reliance on this type of hardware expedites the network, this has raised concerns about whether this high-efficiency rate comes at the cost of decentralization. 

During last October’s Token2049 conference, whistleblower Edward Snowden gained attention for bringing up this point.

Speaking through a video link, Snowden raised concerns that Solana’s focus on speed and efficiency comes at the cost of decentralization, which he sees as essential for keeping blockchain technology trustworthy. He also said that it makes the network more susceptible to government interference.

His comments reflected doubts shared by many crypto community members.

“Solana‬‭ faces‬‭ valid‬‭ concerns‬‭ regarding‬‭ centralization‬‭ due‬‭ to‬‭ its‬‭ validator‬‭ hardware‬‭ requirements‬‭ and‬‭ relatively‬‭ smaller‬‭ validator‬‭ set,‬‭ which‬‭ could‬‭ potentially‬‭ lead‬‭ to‬‭ network‬‭ control‬‭ by‬‭ fewer‬‭ entities.‬ While‬‭ Solana‬‭ prioritizes‬‭ performance‬‭ at‬‭ a‬‭ potentially‬‭ higher‬‭ centralization‬‭ trade-off,‬‭ Ethereum‬‭ prioritizes‬‭ decentralization‬‭ and‬‭ security,‬‭ now‬‭ with‬‭ improved‬‭ energy‬‭ efficiency‬‭ and‬‭ ongoing‬‭ scalability‬‭ enhancements,” Pellicer said. 

For Solana to become more competitive, it will need to address these risks. 

What Solana Needs to Surpass Ethereum

Solana would have to take several significant steps to surpass Ethereum regarding market share and influence. According to Pellicer, it would need to overcome four specific hurdles.

“Firstly,‬‭ achieving‬‭ parity‬‭ or‬‭ surpassing‬‭ Ethereum‬‭ in‬‭ developer‬‭ adoption‬‭ is‬‭ crucial,‬‭ requiring‬‭ significant‬‭ investment‬‭ in‬‭ developer‬‭ tooling‬‭ and‬‭ community‬‭ building.‬‭ Secondly,‬‭ Solana‬‭ needs‬‭ to‬‭ cultivate‬‭ truly‬‭ innovative‬‭ and‬‭ unique‬‭ DeFi‬‭ applications‬‭ that‬‭ differentiate‬‭ it‬‭ beyond‬‭ speed‬‭ and‬‭ cost‬‭ advantages.‬‭ Thirdly,‬‭ addressing‬‭ centralization‬‭ concerns‬‭ and‬‭ demonstrating‬‭ long-term‬‭ network‬‭ stability‬‭ and‬‭ resilience‬‭ are‬‭ vital‬‭ for‬‭ attracting‬‭ institutional‬‭ capital‬‭ and‬‭ broader‬‭ trust.‬‭ Finally,‬‭ Solana‬‭ would‬‭ need‬‭ to‬‭ capture‬‭ emerging‬‭ market‬‭ segments‬‭ or‬‭ use‬‭ cases‬‭ where‬‭ Ethereum‬‭ is‬‭ less‬‭ dominant to carve out a truly leading position,” he said. 

‭Solana has previewed upcoming products that are scheduled for launch this year. Among them is the Solana Seeker, an Android-powered smartphone designed for Web3 applications. This device offers enhanced functionality and design for users interacting with the Solana ecosystem, including managing crypto assets.

Meanwhile, Solana’s upcoming Firedancer validator client is designed to improve network stability and transaction processing. Its distinct codebase offers greater resilience against widespread outages and is expected to enhance Solana’s performance.

In the United States, there is widespread anticipation over the potential launch of a Solana spot exchange-traded fund (ETF). How significantly these initiatives will contribute to increased network adoption remains to be seen. 

Scalability Continues to be Ethereum’s Achilles Heel

Ethereum must address its points of contention to maintain its dominance over the crypto market. Scalability remains a central challenge.

The network’s current architecture, which can only handle a limited number of transactions per second, limits its ability to accommodate users’ increasing demand. Users tend to experience intense network congestion, which results in slower transaction times and increased fees for those interacting with dApps on the network. 

Ethereum has developed a Layer-2 ecosystem to reduce congestion in response to these issues. However, these solutions have received criticism for causing user fragmentation.

“Ethereum‬‭ must‬‭ continue‬‭ to‬‭ innovate‬‭ and‬‭ successfully‬‭ roll‬‭ out‬‭ its‬‭ scaling‬‭ solutions‬‭ to‬‭ maintain‬‭ its‬‭ competitive‬‭ advantage.‬‭ It‬‭ needs‬‭ to‬‭ ensure‬‭ its‬‭ Layer-2‬‭ ecosystem‬‭ becomes‬‭ seamless‬‭ and‬‭ user-friendly,” Pellicer told BeInCrypto. 

Also, safeguarding and expanding the aspects that already make Ethereum so competitive will prove essential to maintain its edge over other networks.

“‬‭For‬‭ Ethereum,‬‭ sustained‬‭ success‬‭ hinges‬‭ on‬‭ the‬‭ successful‬‭ scaling‬‭ of‬‭ its‬‭ ecosystem‬‭ through‬‭ Layer-2‬‭ solutions,‬‭ continued‬‭ innovation‬‭ in‬‭ DeFi‬‭ and‬‭ broader‬‭ application‬‭ areas,‬‭ and‬‭ maintaining‬‭ its‬‭ strong‬‭ developer‬‭ community,” he added.

Though Pellicer doesn’t expect Solana to surpass Ethereum anytime soon, the increasing stakes between competing networks is a good sign. 

“Ultimately,‬‭ increased‬‭ competition‬‭ and‬‭ the‬‭ rise‬‭ of‬‭ a‬‭ strong‬‭ alternative‬‭ platform‬‭ like‬‭ Solana‬‭ could‬‭ be‬‭ beneficial‬‭ for‬‭ the‬‭ broader‬‭ crypto‬‭ ecosystem,‬‭ fostering‬‭ innovation‬‭ and‬‭ driving‬‭ adoption‬‭ by‬‭ offering‬‭ users‬‭ more‬‭ choices‬‭ and diverse functionalities,” Pellicer said.

Whether Solana can continue climbing the ranks will only be answered in time.

Grayscale has launched a new investment product that provides exposure to Dogecoin (DOGE), signaling a shift in how the asset manager views the once-dismissed meme coin. 

The firm believes DOGE has evolved beyond internet humor and could play a role in financial accessibility on a global scale.

Dogecoin ETF Momentum Grows

The newly introduced Dogecoin Trust operates as a closed-end fund with a 2.5% management fee for investors.

This move follows political developments in the US, where President Donald Trump established the Department of Government Efficiency (D.O.G.E.) under Elon Musk’s leadership. 

“We are proud to announce a new single-asset crypto investment fund, Grayscale Dogecoin Trust DOGE. Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system,” Grayscale wrote on X (formerly Twitter). 

Since Trump’s victory, several investment firms have submitted filings for meme coin ETFs, including Dogecoin. Former SEC Chairman Gary Gensler had resisted such products, but shifting regulatory sentiment has led to a wave of new applications.

Earlier this week, Bitwise officially filed for a Dogecoin ETF, seeking approval under the Securities Act. The application named Coinbase Custody as the fund’s custodian but left out key details, including fees and the ticker symbol.

“DOGE, originally a meme coin, is now viewed as a tool for global financial inclusion, grassroots activism, and a viable payment method due to its low transaction costs and fast transfer speeds,” wrote The Wolf of All Streets Scott Melker. 

Prediction markets have reacted strongly to these developments. Polymarket odds for ETF approval jumped to 56%. This reflects a rising confidence in regulatory acceptance of crypto investment products.

Grayscale Expands Crypto Offerings

Grayscale continues to push forward with new crypto-based financial products. Earlier today, the firm became the fifth asset manager to file for an XRP ETF.

The firm has also been expanding into Bitcoin mining investments, launching the Bitcoin Miners ETF (MNRS). The fund focuses on companies generating revenue through Bitcoin mining operations. 

This allows investors to gain exposure to mining-related businesses without directly holding cryptocurrencies.

Competition among asset managers is intensifying. Last week, Grayscale submitted ETF filings for Litecoin, Solana, and three additional cryptocurrencies. 

Among the latest filings, Grayscale’s Litecoin ETF stands the best chance of early approval. Canary Capital also submitted a similar application, which has been acknowledged by the SEC.

Meanwhile, Grayscale has expanded its list of potential future crypto investment products, adding nearly 40 digital assets to its consideration portfolio. 

The firm’s aggressive push into crypto ETFs reflects the increasing demand for regulated, mainstream investment options in the digital asset space.