Silver's Ascent: A New Dawn for Tangible Assets
The Unprecedented Decline of XRP Against Silver
Since July 2025, XRP has experienced a precipitous drop of 80% when measured against silver. This dramatic decline coincides with silver's impressive ascent, culminating in its price soaring past $110 per ounce in recent trading. This stark contrast underscores a significant revaluation in the investment landscape.
Silver's Market Dominance and Bitcoin's Retreat
Silver's market capitalization has now grown to be 3.5 times larger than Bitcoin's, marking a stunning reversal for what was once hailed as 'digital gold.' While silver has surged by 270% over approximately 13 months, climbing from $30 to $110 an ounce, Bitcoin has simultaneously seen an 11% decrease in value during the same period. This shift indicates a growing preference for physical commodities over digital currencies.
Factors Fueling Silver's Bull Run
The robust rally in silver prices is largely attributed to investors seeking refuge in physical assets amidst a climate of global uncertainty. Escalating geopolitical tensions and concerns over trade wars, such as the potential tariffs threatened by President Donald Trump against Canada if it pursues a trade agreement with China, are driving capital away from digital assets and into safe havens like precious metals.
Tight Supply and Anticipated Monetary Policy Shifts
The physical silver market is currently experiencing tight supply conditions, exacerbated by strong demand from countries like China and India, particularly for kilogram-sized silver bars. Furthermore, market speculation suggests that a potential change in Federal Reserve leadership, with expectations of a more dovish stance on interest rates, makes non-yielding assets such as precious metals more appealing, diverting investment from riskier crypto ventures.
Altcoins Face Severe Headwinds
The challenging market conditions for cryptocurrencies extend beyond XRP. Over the past year, Ethereum has depreciated by approximately 70% against silver, and Solana has seen a more than 60% decline. Benjamin Cowen, a prominent crypto analyst, observes that altcoins continue to reach new lows when their value is assessed in silver. Similarly, The Kobeissi Letter highlighted silver's record-breaking outperformance against Bitcoin, suggesting a waiting game for the broader crypto market.