XRP has taken the lead in market capitalization, surpassing USDt stablecoin, according to CoinGecko. As of January 3rd, XRP’s market cap stands at $138.98 billion, while USDt’s is around $113.94 billion. The surge in XRP’s price is attributed to its recent rally, which began after US President-elect Donald Trump’s victory.
The European Union’s Markets in Crypto-Assets (MiCA) Regulation has also played a role, as stricter rules for stablecoin issuers are enforced. USDT saw a significant decline in market capitalization since December 30th, largely due to its noncompliance with MiCA regulations.
The US government is expected to approve a spot XRP exchange-traded fund (ETF), which has fueled speculation and driven up the coin’s price. Ripple Labs’ recent launch of Ripple USD (RLUSD) has also contributed to XRP’s momentum.
Despite Tether remaining the dominant stablecoin, its market share has dropped due to ongoing regulations. As of December, USDT accounts for 67.21% of the $204-billion stablecoin market, down from previous months. Meanwhile, XRP continues to gain traction, with its price rising nearly 280% over the past year.
The recent surge in XRP’s price has left investors wondering if it will maintain its position as the third-largest cryptocurrency by market capitalization.
Source: https://cointelegraph.com/news/xrp-becomes-third-largest-crypto-by-market-cap