Ripple's XRP has made waves by surpassing the stablecoin USDT to become the third-largest cryptocurrency by market cap. This shift results from recent market changes and XRP innovations.
XRP Market Growth
According to CoinGecko, XRP's market cap surged to $137.68 billion on January 6, surpassing USDT, which has faced a $1.6 billion market cap decline since December 30. This aligns with the introduction of the EU's Markets in Crypto-Assets (MiCA) regulations. At press time, XRP trades at $2.38, reflecting a 15% increase in the last 7 days.
Factors Impacting USDT
The decline in USDT's market share coincides with the implementation of stricter regulations for stablecoin issuers under the MiCA framework. Additionally, on December 13, Coinbase Europe removed USDT from its listings. Despite these challenges, USDT continues to dominate the stablecoin market, accounting for 66.69% of the overall market volume.
XRP ETFs and Innovations
Anticipation for a spot XRP exchange-traded fund (ETF) has further propelled its growth. On December 2, WisdomTree filed for such an ETF with the SEC. These developments follow the launch of Ripple's new stablecoin, Ripple USD (RLUSD), set to integrate into Ripple Payments in 2025.
XRP has secured its position as the third-largest cryptocurrency amidst volatility and significant impacts on stablecoins like USDT. Ripple's innovations and the anticipation of new financial instruments continue to drive interest in XRP.