In a landmark moment for the cryptocurrency industry, XRP has overtaken Tether (USDT) to become the third-largest cryptocurrency by market capitalization. As of March 19, 2025, XRP’s market cap has surged to approximately $148.67 billion, reflecting a 14% increase over the past 24 hours. In comparison, Tether’s market cap stands at $143.44 billion, securing its position as the dominant stablecoin but falling behind XRP in overall ranking.
Key Reasons Behind XRP’s Market Surge
1. SEC Officially Drops Lawsuit Against Ripple
One of the primary drivers behind XRP’s explosive growth is the recent decision by the U.S. Securities and Exchange Commission (SEC) to drop its lawsuit against Ripple. The lawsuit, which had been ongoing since December 2020, accused Ripple of selling XRP as an unregistered security. The prolonged legal battle created uncertainty around XRP’s status in the U.S. market, limiting its adoption by financial institutions and exchanges.
However, after multiple court rulings favoring Ripple—including a judge’s decision that XRP is not inherently a security—the SEC has officially withdrawn its case. This removes a major legal overhang and paves the way for XRP’s broader acceptance, particularly among banks, institutional investors, and payment providers.
With the regulatory uncertainty lifted, major exchanges that previously delisted XRP—such as Coinbase and Kraken—have reinstated trading, leading to a surge in liquidity and investor confidence. The dismissal of the lawsuit has solidified XRP’s legitimacy, fueling its price rally and pushing its market capitalization above Tether’s.
2. Increased Adoption of Ripple’s Payment Solutions
With the SEC lawsuit no longer a barrier, Ripple has aggressively expanded its blockchain-based payment network. RippleNet, which utilizes XRP for cross-border transactions, has seen growing adoption by banks and financial institutions worldwide. The efficiency of XRP in reducing transaction costs and settlement times has made it a preferred alternative to traditional banking methods like SWIFT.
Additionally, Ripple’s On-Demand Liquidity (ODL) service, which facilitates instant global payments using XRP, has been integrated into several major financial institutions. This real-world utility has further strengthened XRP’s position in the market.
3. Rising Investor Sentiment and Institutional Interest
The resolution of Ripple’s legal battle has not only boosted retail investor confidence but has also attracted institutional investors who previously stayed away due to regulatory concerns. As a result, XRP’s trading volume has skyrocketed, contributing to its rapid market cap growth.
Hedge funds and crypto investment firms are increasingly allocating capital into XRP, betting on its long-term potential as a bridge currency for international payments. This shift has provided strong market support, keeping XRP’s price momentum intact.
4. U.S. Government’s Strategic Crypto Reserve Includes XRP
A surprising but significant factor in XRP’s recent rally is the announcement by U.S. President Donald Trump that the government is considering a strategic cryptocurrency reserve. According to reports, this reserve will include Bitcoin (BTC), Ethereum (ETH), and XRP—a move that has sent bullish signals across the market.
The idea of a nation-backed cryptocurrency reserve reinforces XRP’s importance in the financial ecosystem, particularly as a liquidity provider for global transactions. This has further legitimized XRP in the eyes of both retail and institutional investors.
• Final Thoughts
XRP’s recent surge past Tether marks a historic moment in the cryptocurrency market. The dismissal of the SEC lawsuit has removed a major roadblock, allowing XRP to thrive and reclaim its place as one of the top three cryptocurrencies.While the outlook for XRP is highly optimistic, the crypto market remains volatile. Investors should stay informed, monitor regulatory updates, and make well-researched investment decisions.
