While speculation swirls around which crypto asset will be next in line for a U.S. spot ETF approval, XRP is quickly pulling ahead, thanks to deep market liquidity and renewed institutional momentum. According to recent data from Kaiko, XRP now outpaces even Solana (SOL) in several key metrics — and analysts say it's the top contender for the next spot ETF listing.

Liquidity Is King — And XRP Is Winning

In a Monday report, Kaiko analysts highlighted that XRP and SOL currently hold the deepest 1% market depth on vetted exchanges — a strong indicator of liquidity and trade execution quality. Since late 2024, XRP has surged past Solana in this metric, and its liquidity now doubles that of Cardano’s ADA.

This depth is crucial. Regulators and ETF issuers alike look for robust and stable markets when considering spot ETF approvals. In this regard, XRP is checking all the boxes.

XRP’s U.S. Market Share on the Rise

While XRP once faced significant regulatory headwinds due to the SEC’s 2021 lawsuit — which led to delistings and market exits — its U.S. market share has since rebounded to multi-year highs. In contrast, Solana’s market share has declined, falling from a 25–30% range in 2022 to just 16% in recent reports.

This turnaround underscores XRP’s resilience and growing acceptance in the American market, despite its lack of a large futures market — unlike Bitcoin or Ethereum.

2x XRP ETF Launch Adds Momentum

Adding fuel to the fire, asset manager Teucrium recently launched a 2x leveraged XRP ETF, which saw over $5 million in trading volume on its first day. The fund, which aims to deliver twice XRP’s daily return using ETPs and swaps, has become the firm’s most successful launch to date.

This development not only enhances XRP’s visibility in traditional markets but also signals growing institutional interest — a key ingredient for any successful ETF rollout.

Approval Path Looks Clearer Than for SOL or DOGE

While other tokens such as Dogecoin (DOGE) and Litecoin (LTC) are occasionally floated as ETF contenders, XRP’s improving fundamentals and technical infrastructure put it in a stronger position. Even LTC, which shares a proof-of-work mechanism like BTC, has yet to see the same level of momentum or institutional uptake.

According to Kaiko:

“The underlying market's improving dynamics and the launch of a 2x XRP ETF last week position XRP ahead of other assets when it comes to approval.”

But Options Market Remains Cautious

Despite all the progress, the Deribit options market tells a more cautious story. Implied volatility skews for April 18 expirations still favor puts over calls, showing that traders are hedging against potential short-term downside.

This divergence — optimism in fundamentals vs. caution in derivatives — highlights the mixed sentiment still surrounding XRP, even as the SEC has acknowledged several ETF applications tied to it. Of note: Grayscale's XRP spot ETF filing faces a key decision date on May 22.