XRP Overtakes Tether (USDT) from the Top 3 Largest Crypto Assets

Bittime - XRP overtakes Tether (USDT) from the position of third largest cryptocurrency by market capitalization. 

Thus, the top 3 largest cryptocurrency by market capitalization are occupied by Bitcoin (BTC), Ethereum (ETH), and XRP (XRP).

XRP Overtakes Tether (USDT): XRP Price Surges

Sumber: Coinmarketcap

In the last 7 days, the price of XRP has experienced a significant increase of 13.1%, with the price reaching $2.44 per token. 

XRP's market capitalization now stands at around $139 billion. XRP overtook Tether (USDT) and became the third largest crypto asset after Bitcoin ($1,9 trillion) and Ethereum ($432 billion).

In contrast, Tether's market capitalization fell 1.4% over the same period, from $140 billion to $137 billion. This decline is thought to be related to the MiCA regulations that came into effect in Europe, which influence stability of stablecoins like USDT.

Read Also: XRP ETF: Ripple's Game Changer? This is the XRP Price Prediction if Approved! 

XRP Overtakes Tether (USDT): MiCA Regulation

The MiCA Regulation aims to provide a consistent legal framework across European Union member states. 

However, these rules also pose new challenges for the crypto industry and is one of the factors that weakens USDT's position in the market. Coinbase even delisted USDT in Europe to avoid potential legal complications.

In addition, the emergence of new stablecoins with more attractive models, such as Ethena and Ondo, has also begun to erode Tether's dominance. Now, XRP overtakes Tether (USDT) from the top 3 largest crypto assets based on market capitalization.

XRP Overtakes Tether (USDT): Popularity of New Stablecoin

According to Danny Gazit, Managing Director of Hype, the decline in USDT demand is largely due to the increasing popularity of new stablecoins that offer additional returns.

For example, stablecoin Ethena which uses a delta-neutral model and Ondo which offers an RWA-based model. Both provide returns to users who hold these stablecoins, thereby attracting the attention of investors.

Platforms like Coinbase also provide yields for other stablecoins like USDC. In addition, the emergence of new trading pairs such as Ethena's USDe further reduces dependence on USDT to XRP shifting Tether (USDT).

Read Also: Don't rush to sell XRP, pay attention to these 7 important points! 

XRP Overtakes Tether (USDT)

This is not the first time that XRP has overtaken Tether (USDT) in market capitalization. On December 1, 2024, XRP also managed to overtake USDT and Solana (SOL) when the price of XRP rose above $2 for the first time in almost 7 years.

Meanwhile, market capitalization XRP successfully surpassing USDT shows that the dynamics of the crypto market continue to change. 

With competition getting tougher, the future of stablecoins like USDT will depend heavily on the ability to adapt and offer added value to users.

Read Also: Potential of Ripple (XRP) Technology in Various Industrial Sectors 

XRP FAQs

What is XRP and what is its use?

XRP is a digital asset created by Ripple Labs and designed to facilitate cross-border payments. XRP blockchain technology enables transactions in just a few seconds with very low fees making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP supports a cross-border payment system with a focus on speed and cost efficiency, different from Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining so it is more energy efficient.

How much is 1 XRP USD?

Currently, 1 XRP is worth $2.44 according to Coinmarketcap. 

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Reference

Jona Jaupi, XRP Overtakes Tether to Become Third-Largest Cryptocurrency, accessed January 4, 2025.

Coinmarketcap, Coinmarketcap XRP Currency, accessed January 4, 2025.

Author: IPR