The cryptocurrency market has witnessed a significant shift in rankings, with XRP flipping Tether’s USDt stablecoin to claim its spot as the third-largest cryptocurrency by market capitalization. This development comes after the European Union’s Markets in Crypto-Assets (MiCA) Regulation rollout, which has led to a decline in USDt’s market cap.
XRP Market Cap Surges to $138.98 Billion
According to CoinGecko, XRP’s market cap surged to $138.98 billion on January 3, surpassing USDt’s market cap of $137.38 billion. This marks a significant milestone for XRP, which has been gaining momentum in recent months.
USDt Market Cap Declines by $1.6 Billion
The decline in USDt’s market cap comes as the MiCA framework enforces stricter rules for stablecoin issuers. The regulations require stablecoin issuers to maintain full reserves and obtain licenses to operate within the European Union. Coinbase Europe delisted USDT on December 13, citing noncompliance with MiCA.
XRP’s Recent Rally
XRP’s recent rally began after Donald Trump’s victory in the United States presidential election on November 5, which boosted broader market sentiment driven by expectations of pro-crypto policies under the incoming administration. Speculation around a spot XRP exchange-traded fund (ETF) has also fueled XRP’s momentum.
WisdomTree Files for Spot XRP ETF
On December 2, WisdomTree became the fourth company to file for a spot XRP ETF with the US Securities and Exchange Commission, joining Bitwise, Canary Capital, and 21Shares. This development is expected to further boost XRP’s price performance.
Ripple Labs Launches Ripple USD (RLUSD)
Ripple Labs launched Ripple USD (RLUSD), a US dollar-backed stablecoin, on December 17. The stablecoin is set to integrate into Ripple Payments in early 2025 to facilitate cross-border transactions for enterprise clients. RLUSD has already amassed a market cap of $72 million.
Tether Remains Dominant Stablecoin
Despite the dip, Tether continues to dominate the stablecoin market. As of December, USDT accounts for 67.21% of the $204-billion stablecoin market, according to data from DefiLlama. Coinbase’s USDC trails behind at $44 billion in market cap.
USDT User Base Grows by 11.7%
The USDT user base grew by 11.7% in December, adding 21.9 million new users, up from 19.6 million in November, according to a Dune Analytics dashboard. In comparison, USDC saw a 24% increase in new addresses, with 5.7 million created in December.
USDT Activity Remains on Tron
Most USDT activity remains on Tron, accounting for 53.8% of addresses. USDC, on the other hand, sees the most traction on Solana, where 30% of its users reside, followed by Ethereum layer-2 Base with 6.5%.
XRP’s Market Cap Approaches $141 Billion
At the time of publication, XRP was trading at $2.43, up 17% in the last 14 days, according to CoinGecko. Over the past year, XRP has risen nearly 280%. XRP’s market cap approaches $141 billion.
Speculation Around XRP ETF
Speculation around a spot XRP ETF has fueled XRP’s momentum. On December 2, WisdomTree became the fourth company to file for a spot XRP ETF with the US Securities and Exchange Commission, joining Bitwise, Canary Capital, and 21Shares.
Ripple Labs Launches RLUSD
Ripple Labs launched Ripple USD (RLUSD), a US dollar-backed stablecoin, on December 17. The stablecoin is set to integrate into Ripple Payments in early 2025 to facilitate cross-border transactions for enterprise clients. RLUSD has already amassed a market cap of $72 million.
XRP’s Recent Rally
XRP’s recent rally began after Donald Trump’s victory in the United States presidential election on November 5, which boosted broader market sentiment driven by expectations of pro-crypto policies under the incoming administration.
The Future of XRP and USDt
As the cryptocurrency market continues to evolve, it remains to be seen how XRP and USDt will fare. Will XRP continue to gain momentum, or will USDt regain its spot as the third-largest cryptocurrency? Only time will tell.
Conclusion
In conclusion, XRP has flipped Tether’s USDt stablecoin to claim its spot as the third-largest cryptocurrency by market capitalization. This development comes after the European Union’s Markets in Crypto-Assets (MiCA) Regulation rollout and speculation around a spot XRP ETF. As the cryptocurrency market continues to evolve, it remains to be seen how XRP and USDt will fare.
