cryptocurrencyby market capitalization, trailing only Bitcoin and Ethereum. As of January 6, $XRP 's market cap reached $137.68 billion, surpassing USDT, which has seen a decline of $1.6 billion in value since December 30. This shift in rankings coincides with the European Union's new Markets in Crypto-Assets (MiCA) regulations, which have added uncertainty to the stablecoin sector. Currently, USDT's market cap stands at $137.15 billion, reflecting a 2.24% drop in market share over the past month.
$XRP 's impressive growth over the last week is highlighted by a 15% price increase, with the token currently trading at $2.38, up nearly 320% over the past year. However, XRP’s position may not be secure in the long term, as market fluctuations could lead to shifts in its ranking. The surge in XRP’s market value can largely be attributed to recent political events, including the ongoing anticipation of former President Trump’s first days in office and the speculative impact on cryptocurrency markets. Despite these gains, XRP is still approximately 30% below its all-time high of $3.40, reached seven years ago.
The cryptocurrency's momentum has also been fueled by developments surrounding Ripple’s plans for a spot XRP exchange-traded fund (#ETF ). In December 2024, several companies, including WisdomTree, filed for a spot XRP ETF with the US SEC, signaling growing institutional interest. Furthermore, Ripple launched Ripple USD (RLUSD), a stablecoin backed by the US dollar, which aims to enhance cross-border enterprise transactions and is expected to be integrated into Ripple Payments by early 2025. The RLUSD’s market cap has already reached $72 million, adding to the positive sentiment surrounding XRP.
On the other hand, Tether (#USDT ) has faced increasing challenges. The stablecoin has suffered from market headwinds, including regulatory concerns under MiCA, which mandates full reserves and licensing for stablecoin issuers in the EU. This, combined with Coinbase Europe’s removal of USDT from its listings on December 13 due to compliance issues, has contributed to a decline in USDT’s dominance. Despite these issues, USDT continues to hold a significant share of the stablecoin market, accounting for over 66% of the $204 billion market as of December 2024, with Tron seeing the most activity related to USDT.
This ongoing evolution in the stablecoin market, coupled with XRP’s bullish trends and the regulatory backdrop, suggests that the dynamics within the top ranks of the cryptocurrency market could shift further in the coming months.
