Experts predict that XRP will be the first among SOL and DOGE to gain U.S. spot ETF approval.

XRP and Solana (SOL) are emerging as the top contenders for U.S. spot ETF approval, with XRP now leading the charge due to its increased liquidity, according to a report from Kaiko analysts.

Kaiko Indices data shows that both XRP and SOL have some of the deepest 1% market depth on vetted exchanges. However, since late 2024, XRP has surged ahead of SOL in liquidity, surpassing Cardano’s (ADA) liquidity by a significant margin.

Unlike Bitcoin, which secured spot ETF approval after Grayscale’s legal victory revealed inconsistencies in the SEC’s treatment of futures and spot markets, XRP presents a different case. XRP lacks a strong futures market, and much of its trading volume is concentrated offshore.

Despite these differences, XRP’s U.S. market share has reached its highest point since the SEC’s 2021 lawsuit caused widespread delistings, while Solana’s share has declined from a peak of 25-30% in 2022 to just 16% currently.

XRP’s recent momentum has been further fueled by the launch of Teucrium’s 2x XRP ETF, which tracks European exchange-traded products (ETPs) and swap agreements to deliver twice the daily returns of XRP. The product saw over $5 million in volume on its debut day, marking it as Teucrium’s most successful launch to date.

According to Kaiko analysts, the improving dynamics in XRP’s market, coupled with the successful launch of the 2x XRP ETF, position the token ahead of others for U.S. spot ETF approval. While other tokens, such as Litecoin (LTC), could also be potential candidates, XRP’s strong fundamentals give it a clear advantage.

However, despite XRP’s strong position, the Deribit options market indicates some caution, with a bearish skew in implied volatility for April 18 expirations, suggesting that investors are seeking downside protection.

The SEC is currently reviewing several XRP spot ETF applications, with Grayscale’s filing facing a critical deadline on May 22.