XRP has surged to become the third-largest cryptocurrency by market capitalization, now ranking just behind Bitcoin and Ethereum. This milestone marks a significant shift in the crypto hierarchy, with XRP overtaking Tether's USDT stablecoin.
Market Performance Highlights
- Current Market Cap: Nearly $140 billion
Growth Metrics:
- +15% over the past week
- +350% year-over-year
The token's recent rally aligns with Ripple Labs' strategic moves, including the December 2023 launch of its USD-backed stablecoin, Ripple USD (RLUSD). Analysts also attribute the momentum to speculation about a potential XRP ETF approval under the SEC's pro-crypto leadership.
Factors Driving XRP's Dominance
1. Regulatory Developments
The EU’s Markets in Crypto-Assets (MiCA) regulation has impacted stablecoins like USDT, which lost 1.6% of its market cap post-implementation. Coinbase delisted USDT due to non-compliance, further weakening Tether’s position.
2. Asian Market Influence
Tether retains stronghold in Asia, generating 80% of its trading volume there. This regional dominance may help offset losses in Europe.
XRP ETF Prospects
Firms like WisdomTree and Bitwise have filed for spot XRP ETFs, fueling optimism. An approved ETF could catalyze institutional investment, mirroring the Bitcoin ETF effect.
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FAQs
Q: Why did XRP surpass USDT?
A: XRP’s price surge and USDT’s regulatory challenges under MiCA shifted market rankings.
Q: Could USDT regain its position?
A: Yes—Tether’s Asian market strength provides a recovery pathway.
Q: What’s next for XRP?
A: ETF approvals and Ripple’s stablecoin adoption will be key drivers.
Key Takeaways
- XRP’s market cap now exceeds $140B.
- Regulatory shifts and product launches are reshaping crypto rankings.
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Data sourced from crypto.news.