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

XRP's record of surpassing Ethereum (ETH) in market capitalization 8 years ago is drawing attention again. Analysts suggest that the altcoin dominance competition could be shaken again, driven by Ethereum's governance controversy, 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 that time, XRP temporarily seized the major altcoin status held by Ethereum, 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 a governance crisis and controversy over the departure of core developers are growing within Ethereum. Ethereum co-founder Vitalik Buterin has publicly responded to community criticism surrounding the departure of key Ethereum Foundation developers and the decline in Ethereum's share of the overall fee market. U.Today assessed that Buterin's so-called anti-marketing moves are further accelerating the exodus of investors who are fatigued by liquidity being diluted across hundreds of Layer 2 networks.

On the other hand, 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 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, Ethereum ETFs saw an outflow of $215 million, while US XRP funds recorded a net inflow of $22 million. While funds exited Ethereum, XRP-related products maintained a positive flow, demonstrating a difference in market sentiment.

A third variable, Hyperliquid (HYPE), has also emerged in the altcoin dominance competition. U.Today reported that in May 2026, the Hyperliquid ecosystem attracted attention from Wall Street, 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 has re-emerged as a signal of shifting altcoin power amidst Ethereum's weakness, the XRP Ledger's tokenization achievements, and the rise of Hyperliquid.

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