Key Takeaways
Crypto treasuries have scooped up over 4 million SOL, while XRP interest has remained relatively low. Is this enough for SOL to outperform XRP in the next few months?
Since last November, XRP has outperformed Solana by over 400%, making it a top-three crypto asset by market cap. On the contrary though, SOL has attracted more interest from public firms running corporate treasuries than XRP.
With both assets expecting a Spot ETF approval soon, will the crypto treasury demand give SOL an edge over the next few months?
SOL outpaces XRP
Since May, SOL has seen record-high interest from crypto treasury companies. In July alone, trading volumes from SOL-focused firms hit $4 billion while XRP attracted “just” $460 million.
Source: Blockworks
Overall, corporate treasuries have accumulated 4.3 million SOL, worth about $905 million as per the press time market price.
Some of the top SOL treasury firms include SOL Strategies, DeFi Development Corp (DFDV), Upexi (UPXI), Sharps Technologies (STSS) and others. In fact, Sharps Technologies recently secured $400M capital and plans to expand to $1 billion for SOL acquisition.
Source: Blockworks
The trend could bolster SOL’s value, similar to the lift-off Ethereum [ETH] recorded after BitMine and other public firms began aggressively bidding for it.
On the other hand, XRP has so far seen only marginal demand from public firms for treasury reserves. As it stands, only SBI Holdings Japan and Worksport Ltd have shown any interest in XRP treasury.
Simply put, if this disparity remains consistent in the coming weeks post-ETF approvals, SOL could be in a better position to surpass XRP on the price charts.
Here, it’s also worth noting that the XRP/SOL ratio, which tracks the price difference between the two altcoins, suggested that SOL could outperform XRP if the indicator drops lower.
Source: XRP/SOL ratio, TradingView
On the price charts, SOL has surpassed XRP by 27% over the past few weeks. Additionally, the altcoin has outperformed ETH and BTC too amid analysts’ projections of a major rally in Q4.
For its part, XRP has seen massive profit-taking by whales, dragging it lower down. Must be noted though that XRP recently recorded the highest CME Futures interest – A sign of institutional appetite. Hence, it may be too early to discard it.
Overall, XRP and SOL will enjoy new demand avenues from Spot ETFs if the SEC greenlights them. However, SOL may have an edge due to increasing crypto treasury demand. Especially if it follows ETH’s playbook.
