Ripple is implementing major upgrades, similar to what has helped Ethereum grow exponentially.
If the market previously supported ETH, can XRP follow that path?
Q2 for Ripple [XRP] has been challenging. While capital flowed into high-beta assets, XRP lagged behind, dropping nearly 30% compared to Ethereum [ETH] after an impressive growth of over 100% in Q1. However, this shift is not coincidental but part of an overall strategy.
Ethereum developers made a successful comeback with the Pectra upgrade in early May, contributing to a 40% rise in ETH prices, helping the coin escape stagnation after November. Currently, Ripple seems to be learning from this plan. The question is whether the market will value the XRPL roadmap as it did with Ethereum.
Future upgrade efforts of the XRP Ledger
Ripple is making bold moves to upgrade the XRP Ledger. Earlier this year, Ripple acquired Hidden Road, a reputable broker for $1.25 billion. Major investment brokers provide services such as executing trades for large investors.
Through this deal, Ripple is providing institutions with better tools to trade capital using XRP. But that's just the beginning. Ripple also plans to launch a new lending protocol in Q3 2025 and add programmable capabilities, integrating smart contract features that allow developers to build applications similar to those on Ethereum.
Overall, this plan is clearly aimed at readiness for institutions. In the context of increasing speculation about ETF funds and Ripple officially withdrawing its appeal in the SEC lawsuit, the current timing between legal clarity and technical expansion is very favorable.
Source: X
The market's initial reaction reflects this change. At the time of writing, XRP has risen above $2.15, up 5%, while Open Interest (OI) increased by 3%, indicating speculative liquidity is returning to the derivatives market.
However, the key is that these changes cannot hold without real investment from institutions. The XRPL roadmap reflects Ethereum's strategic framework post-upgrade. But to create similar valuation, institutional capital needs to follow suit.
The technology is ready, but is Wall Street paying attention?
The XRP/ETH index provides a clear view of capital flow movements. Since November 13, this ratio has surged 550% in five months, closely following XRP's growth of 217% from $0.70, peaking near $3.40 in mid-January.
It is noteworthy that this ratio remains strong despite XRP dropping 35% from its peak. While Ethereum has fallen to a multi-year low at $1,440, this ratio maintained its resilience throughout Q2, indicating that the redirected capital flows have supported XRP during the downturn.
Source: TradingView (XRP/ETH)
However, by the end of Q2, the trend reversed. This ratio dropped nearly 40%, hitting a bottom at 0.0008, marking a strong divergence. The reason? Ethereum's Pectra upgrade. Deployed in early May, Pectra helped ETH surpass the $2,000 threshold, triggering new capital flows.
The circulation speed of stablecoins has increased significantly, BlackRock has started accumulating, and annual fees have risen to $7.3 billion. More importantly, with the Glamsterdam upgrade expected by the end of 2026, ETH has regained its leading position in the market narrative.
Now, Ripple's shift towards an 'Ethereum-style' upgrade seems more strategic than random. But will the market react similarly? It’s a pivotal moment. Without institutional participation, the XRP/ETH ratio could continue to decline further.
Source: https://tintucbitcoin.com/roadmap-ripple-hop-dong-thong-minh-va-vay/
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