In a major move for the altcoin space, XRP has now moved ahead of Tether (USDT) to once again attain the third-largest market cap position among all cryptocurrencies.
As of Monday, the price of XRP had surged above $2.61—this surge in price signaling renewed investor confidence in the asset—which had not previously been attained since March 6. Another way to put this would be: XRP has overtaken USDT to become the third-largest cryptocurrency by market cap.
Several supportive macro and ecosystem-specific factors, such as increasing retail interest and friendly legislative developments in the United States, are propelling the price of XRP upward. It pulled back only slightly to $2.50 just before press time, affirming a still-bullish XRP narrative that rests on a strong support zone at $2.38 and no technical resistance to speak of until well above the current price level.
Legislative Tailwinds: Missouri’s House Bill 594 Sparks Investor Excitement
A major reason for XRP’s latest surge is House Bill 594 in Missouri, a piece of legislation that could reshape crypto taxation policy in the U.S. If passed, this bill would make Missouri the first state in the nation to offer a full income tax deduction on all capital gains from cryptocurrency, including both Bitcoin and XRP.
The intro of the bill is changing the way many people view not just XRP but the entire crypto space.
Reassuring crypto investors, the proposed tax relief has far-reaching effects. Right now, the inflow of capital and the amount of selling that has to take place because of tax liabilities—those are the two things that are really keeping the price down.
This lawmaking process shows that a growing number of states want to be seen as friendly to cryptocurrencies. For XRP, which has been under the regulatory microscope in the U.S. for years, the legislative action offers a highly unusual and not to be overlooked piece of domestic policy support that could provide some daylight for its function in what more and more seems like a developing crypto economy.
Growing On-Chain Adoption and Real-World Integration
Besides good news from the regulatory front, XRP’s user base is growing impressively. On-chain data shows that the total number of XRP holders has grown 11% in 2025 alone. This is a pretty substantial increase, and it underscores a rising interest in XRP from both retail and institutional participants. This interest is much more apparent when you consider that the total number of holders has increased 428% since 2020.
XRP has some recent real-world use cases. One of the most popular implementations of XRP is on the travel booking platform Travala.com. As a decentralized travel service, Travala utilizes multiple cryptocurrencies, including XRP, as payment methods. This integration allows customers to book experiences and accommodations all across the world with their digital assets. Adding XRP to Travala’s list of payment methods enhances the token’s real-world utility.
This sort of adoption is vital if altcoins are to achieve anything more than speculative relevance. Platforms such as Travala, which exist in the sort of half-mainstream, half-niche world that digital currencies inhabit, serve as crucial visibility spaces for altcoins that aspire to be seen as something more than mere monuments of market cap. When it eschews niche remittance service partners and seeks out mainstream platforms as presentation spaces, XRP bears the flag for mainstream relevance.
Technical Outlook: No Major Resistance Ahead, Support at $2.38
XRP seems to be in a good place from a technical analysis standpoint, for further upward movement. On-chain analytics demonstrate that there are not any significant resistance clusters to speak of right in XRP’s path, which suggests that—with the right kind of push—it could make a run well beyond where it is currently trading. Most other altcoins, for better or for worse, are still essentially trading in lockstep with Bitcoin. If altcoins were not following Bitcoin’s every price move, we might be more inclined to say that XRP is a standout—perhaps it is, anyway.
At the same time, the crucial support area lies at $2.38. Here, bulls must defend in the face of any kind of short-term volatility. Below this price point, support is evident, and it’s a relatively clean way to play any potential bounce. Above it, XRP seems to be in a fairly uncontested range. Analysts suggest that this path of least resistance stays in the direction of upwardly mobile XRP.
The absence of overhead resistance and the presence of firm foundational support offer a propitious arrangement for XRP to possibly make a run at higher levels in the immediate term. Whether that translates into an actual test of the still-elusive $3 mark will be contingent upon the altcoin’s broader market conditions and the perseverance of its recent momentum.
XRP’s rise to the number three position in market capitalization may not be a mere flash in the pan. In fact, it could symbolize the dawn of a more continuous and significant phase in its prolonged recovery journey. Why do I say that? It’s because of these three factors: strong on-chain growth; supportive U.S. legislation, perhaps not too far on the horizon; and real-world adoption that is happening right now.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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