What is the looming power shift between ETH and XRP?
Since Ethereum’s Merge update in 2022, the network’s transition to a deflationary model has steadily reduced the supply of Ether (.
ETH’s scarcity fading vs. XRP’s regulatory clarity
For investors and institutions, any change in ETH’s supply pattern could prompt a fresh look at portfolio strategy. If ETH loses its deflationary edge, capital may flow toward assets that offer stronger liquidity and clearer regulatory footing.
XRP holds a clearer legal standing, having been deemed a non-security in certain jurisdictions, which supports its institutional use in compliant cross-border payments. ETH, meanwhile, still faces regulatory uncertainty around staking and token classification. This contrast could influence institutional liquidity preferences.
As a result, investors may adopt a more mature and risk-aware approach to cryptocurrency allocation. This could mean retaining ETH for exposure to DeFi and innovation while increasing holdings of XRP for transactional stability and regulatory clarity.
