XRP on the Brink of Surpassing Binance Coin in Market Cap Race
In the dynamic world of cryptocurrencies, XRP and Binance Coin (BNB) stand as two of the market’s titans, yet their paths are diverging significantly. A mere $2 billion gap now separates their market capitalizations, with BNB at $35.7 billion and XRP close behind at $33.2 billion. This narrowing margin positions XRP within striking distance of overtaking BNB, needing only an 8% price surge to do so.
Contrasting their current standings, the start of the year saw BNB’s market cap more than double that of XRP. This gap has significantly closed following recent developments, including Changpeng Zhao‘s departure as CEO of Binance. XRP had a momentary lead over BNB in July, triggered by a U.S. federal court decision favoring Ripple, spiking its price by 75% and elevating it to the fourth-largest cryptocurrency.
XRP, launched in 2012, is the primary currency of the Ripple Ledger, now known as the “XRP Ledger.” It is marketed as a cost-effective intermediary for cross-border remittances. BNB, on the other hand, serves as the native token of the Binance Smart Chain, a platform supporting various tokens and applications, including cryptocurrencies, stablecoins, and DeFi protocols. BNB also offers trading fee reductions on Binance.
BNB’s dominance over XRP, which began in February 2021 during the last bull market, might soon shift. BNB’s value has decreased by 67% since its peak in November 2021, while XRP has seen a significant recovery, increasing by more than three-quarters since its low point in September. Meanwhile, BNB has only experienced a 6% rise in the same period.
Both cryptocurrencies face significant challenges. The U.S. has dropped charges against Ripple executives Brad Garlinghouse and Chris Larsen, but a jury trial next spring will decide if Ripple’s sales to institutional investors breached securities laws. Meanwhile, Binance confronts severe issues, including a $4 billion payment to U.S. authorities and legal challenges for its founder, Zhao. These troubles have led to a 10% drop in BNB’s value since Zhao’s guilty pleas were confirmed.
Despite these challenges, Binance remains the world’s largest crypto exchange by volume. Yet, the recent difficulties and a mandatory three-year market surveillance program could weaken its position relative to other global platforms.