In a significant market shift, XRP has officially overtaken Tether (USDT) to claim the position of the third-largest cryptocurrency by market capitalization, following only Bitcoin (BTC) and Ethereum (ETH). As of January 2025, XRP’s market cap has surged past $138 billion, while USDT’s valuation has faced headwinds amid tightening regulatory scrutiny in the European Union.
What’s Fueling XRP’s Momentum?
Several key developments have driven XRP’s impressive rally:
Regulatory Shifts in Europe:
The implementation of the European Union's Markets in Crypto-Assets (MiCA) framework has introduced stricter compliance requirements for stablecoin issuers, contributing to a decline in USDT’s dominance.
Political Tailwinds in the U.S.:
The victory of Donald Trump in the November 2024 U.S. presidential election has revitalized bullish sentiment in the crypto market, with investors anticipating a more favorable regulatory landscape under his administration.
Speculation Around an XRP Spot ETF:
Market excitement is building around the potential approval of a spot XRP exchange-traded fund (ETF), adding further fuel to XRP’s upward trajectory.
Ripple's Stablecoin Launch:
In December 2024, Ripple Labs launched Ripple USD (RLUSD), a USD-backed stablecoin designed to streamline cross-border payments, adding to the utility and ecosystem strength of Ripple’s platform.
These factors have combined to bolster XRP’s market capitalization and enable it to surpass USDT, reasserting its position among the crypto market's elite.
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