- XRP and ETH are both showing elevated Funding Rates.
- Could this be the start of Ripple outpacing Ethereum heading into Q3?
Q3 has kicked off with fresh capital rotations, and Ethereum [ETH] extended its lead in the altcoin pack with a 36.48% rally last quarter.
Now, Futures markets are leaning bullish once again. In fact, ETH Funding Rates flipped positive at 0.0083%, suggesting leveraged traders are anticipating upside continuation.
However, according to AMBCrypto, this setup raises a deeper question: was this rally driven by genuine spot demand, or did it feed off capital rotation from laggards like Ripple [XRP]?
How this dynamic unfolds could shape the altcoin narrative as we head deeper into Q3.
XRP/ETH bounces at support as leverage builds
However, here’s where things get interesting.
This drawdown included a clear rebound off the 0.0008 support level. Structurally, this suggested the pair may be carving out a local bottom.
Historically, such reversals in XRP/ETH have preceded periods of relative strength for the former. Take Q1 as an example: ETH ended the quarter with a sharp 45.41% drawdown, while XRP held steady with a flat close.
During that stretch, XRP/ETH surged by nearly 83%. It was a clear signal of capital rotation away from ETH into XRP.
Naturally, the question now is—could Q3 be setting up for a similar reallocation? Especially with Funding Rates rising, hinting that leveraged bets on XRP are starting to build again.
Which L1 will lead the next leg?
According to AMBCrypto, the XRP/ETH divergence isn’t just on charts. Instead, it’s playing out in price action, too.
On the monthly scale, XRP posted a 2.03% gain from its $2.17 open, while Ethereum slipped 2%, despite bouncing off $2,119.
Under the surface, XRP’s on-chain dynamics are signaling a shift in power. In June alone, the 10 million–100 million XRP whale cohort added nearly 310 million XRP to their bags.
This brings their collective holdings to 8.11 billion XRP, making them the most dominant cohort by supply for the first time this cycle.
That’s no trivial move.
Naturally, it strengthens the case for a capital rotation, supported by both technical structure and on-chain conviction.
In fact, with Funding Rates climbing and the XRP/ETH rebound intact, both strategic and speculative players seem to be leaning in.
If this momentum holds, we could be looking at a setup similar to Q1, where XRP flipped the script on Ethereum.
A fresh rotation might just be underway. And this time, XRP’s riding in with serious backing.