Ethereum, amid $200 Million ETF Outflow, 8-Year-Old 'XRP Reversal Drama' Recalled... Will It Lose Its Throne Again?

▲ XRP, Ethereum (ETH)/ChatGPT Generated Image

The record of XRP surpassing Ethereum (ETH) in market capitalization 8 years ago is once again drawing attention. An analysis suggests that the altcoin leadership competition could be shaken again, driven by Ethereum's governance controversies, ETF fund outflows, and the tokenization achievements of the XRP Ledger.

According to U.Today on May 25 (local time), CoinGecko re-shared past data showing XRP surpassing Ethereum's market capitalization in early 2018. At the time, XRP temporarily took over Ethereum's position as a major altcoin, and U.Today reported that as of late May 2026, the balance of power among the top three cryptocurrencies could shift again.

U.Today pointed out that within Ethereum, governance crises and controversies over the departure of key developers are growing. Ethereum co-founder Vitalik Buterin has publicly responded to community criticisms surrounding the departure of key developers from the Ethereum Foundation and the decline in Ethereum's market share within the total fee market. U.Today assessed that Buterin's so-called anti-marketing moves are further fueling the departure of investors who are fatigued by the dilution of liquidity across hundreds of Layer 2 networks.

Conversely, Ripple and the XRP Ledger (XRPL) are expanding their presence in the enterprise-friendly area of real-world asset (RWA) tokenization, U.Today reported. The explanation is that the XRP Ledger is establishing itself as one of the foundational platforms for commercial banks like JPMorgan to issue tokenized bonds.

Fund flows also diverged. According to U.Today, last week, $215 million flowed out of Ethereum ETFs, while US XRP funds recorded a net inflow of $22 million. While funds were exiting Ethereum, XRP-related products maintained a positive flow, showing a difference in market sentiment.

A third variable, Hyperliquid (HYPE), has also emerged in the altcoin leadership competition. U.Today reported that in May 2026, the Hyperliquid ecosystem attracted Wall Street's attention, and the protocol dominates 43% of the on-chain fee market. The Hyperliquid token has risen 77% year-to-date. Goldman Sachs entered Hyperliquid Strategies (PURR) after reducing its Ethereum position by $500 million and its XRP position by $152 million. XRP's 2018 reversal record is not just a historical recollection but is highlighted as a signal of altcoin power shift, recalled amid Ethereum's weakness, the XRP Ledger's tokenization achievements, and the rise of Hyperliquid.

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