XRP reached a $138.98 billion market cap, surpassing Tether after a 17% price surge over 14 days.
Tether’s $1.6 billion market cap drop coincides with MiCA regulations enforcing stricter stablecoin requirements in the EU.
Ripple’s RLUSD stablecoin debut and XRP ETF speculation contribute to XRP’s near $141 billion market cap.
XRP has surpassed Tether’s USDT to become the third-leading digital asset with a market cap of $138.98 billion as of January 3. According to CoinGecko's post on X, XRP now follows only BTC and ETH. The change in hierarchies follows a $1.6 billion drop in Tether’s market cap since December 30, overlapping with the enforcement of the European Union’s Markets in Crypto-Assets (MiCA) Regulation.
Market Momentum and Price Performance
XRP achieved a market cap of nearly $141 billion, driven by a 17% price increase over the past 14 days. At the time of writting, XRP was trading at $2.43, observing a 280% increase over the last year. Recent assumptions around a likely spot XRP ETF and the debut of Ripple’s USD-backed stablecoin, RLUSD, have contributed to its upward trajectory.
The upward move happened following the U.S. election on November 5, which led to anticipations of fair policies under the new administration. Additionally, Ripple Labs launched RLUSD on December 17, with plans to integrate the stablecoin into Ripple Payments by early 2025. RLUSD currently holds a $72 million market cap, according to CoinGecko.
Impact of MiCA Regulations on Stablecoins
Tether’s drop in market share relates with the rollout of the MiCA, which enforces stricter requirements for stablecoin issuers operating in the European Union. These regulations mandate full reserves and licensing for stablecoin operations. Coinbase Europe delisted USDT in December, citing noncompliance with MiCA requirements.
Despite the decline, Tether remains the top stablecoin, accounting for 67.21% of the $204 billion stablecoin market. USDT continues to see most activity on the Tron blockchain, representing 53.8% of its user base.
In December, Tether added 21.9 million new users, growing its user base by 11.7%. In comparison, USDC saw a 24% increase in new addresses, with 5.7 million created during the same period. USDC’s most active blockchain remains Solana, followed by Ethereum layer-2 Base.
The post XRP vs.Tether: XRP Outpaces USDT With $138.98B Market Cap. What is Behind the Surge? appeared first on Crypto News Land.
