XRP overtakes USDT to become third-largest crypto asset
XRP has benefitted from positive news
Ripple’s native cryptocurrency, XRP, has surged past Tether’s USDT to claim the position as the third-largest crypto asset by market capitalization.
As of January 6, XRP’s market cap reached $137.68 billion, surpassing USDT, which has experienced a $1.6 billion decline since December 30, Cryptopolitan informs.
XRP’s market surge
XRP’s growth has been fueled by a combination of factors, including the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation, which has positively impacted the broader crypto market.
XRP’s market cap hit $137.68 billion, placing it behind only Bitcoin and Ethereum. This surge comes as USDT faces a decline in market cap, now standing at $137.15 billion. However, XRP has lost 2.24% of its market share in the last month, indicating the volatility of the crypto market.
Source: Сoingecko
Ripple's recent gains have coincided with increasing institutional interest, including discussions around XRP-based ETFs and the potential impact of MiCA. These developments have helped fuel XRP's recent rally, pushing it to new heights.
Also, the growth of XRP transactions is due to the fact that Ripple Labs introduced Ripple USD (RLUSD), a stablecoin backed by the U.S. dollar, on December 17. Stablecoin will be integrated into Ripple Payments, which will improve the efficiency of cross-border transactions for corporate clients.
Why USDT’s position has faltered
Tether’s market cap struggles in the face of significant market volatility and regulatory uncertainties, including concerns surrounding the stability of stablecoins and the wider crypto ecosystem. Meanwhile, XRP has benefitted from positive news, including the rollout of MiCA and continued investor interest.
XRP’s future in the top three cryptocurrencies remains uncertain, as the market continues to exhibit significant fluctuations. With USDT’s ongoing struggles and XRP’s strong position, the coming months could see further shifts in the crypto rankings.
However, XRP’s recent growth suggests that it could remain a key player in the market for the foreseeable future, especially if regulatory environments continue to favor its use.
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