According to analysts, XRP stands a better chance of obtaining U.S. spot ETF approval ahead of SOL and DOGE.

XRP and Solana (SOL) have emerged as the leading candidates for U.S. spot ETF approval, thanks to their impressive liquidity, with XRP now taking the lead, according to a report by Kaiko analysts.

According to data from Kaiko Indices, XRP and SOL both exhibit the deepest 1% market depth on vetted exchanges, with XRP gaining ground since late 2024. The token has more than doubled Cardano’s (ADA) liquidity, surpassing SOL in the process.

While Bitcoin gained spot ETF approval after Grayscale’s legal victory highlighted the SEC’s inconsistent stance on futures versus spot markets, XRP’s situation differs. It lacks a well-developed futures market, and its trading volume is primarily offshore.

Despite these differences, XRP’s U.S. market share has risen to its highest level since the SEC’s 2021 lawsuit caused delistings, while Solana’s U.S. share has fallen from its 2022 peak of 25-30% to just 16% now.

XRP’s bullish momentum has also been supported by the recent debut of Teucrium’s 2x XRP ETF, which tracks European exchange-traded products (ETPs) and swaps to deliver double XRP’s daily returns. The product saw over $5 million in volume on its launch day, making it Teucrium’s most successful debut to date.

Kaiko analysts noted that these improved market dynamics and the launch of the 2x XRP ETF position XRP ahead of other assets in the race for U.S. spot ETF approval. While some other tokens, like Litecoin (LTC), share similarities with Bitcoin and could also see approval, XRP remains a strong contender.

However, despite XRP’s strong fundamentals, the Deribit options market shows some caution, with implied volatility for April 18 expirations reflecting a bearish bias, indicating 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.