Ripple coin (XRP) has made history by flipping USDT and becoming the third-largest crypto by market capitalization, with a whopping $139.82 billion market cap. This milestone marks a significant achievement for XRP, which has been steadily gaining ground in recent months. Notably, the coin surpassed USDT by over $2.33 billion.
XRP Flips USDT
The XRP price surge has been impressive, with the coin gaining over 16% in the last seven days and a staggering 359% quarter-to-date (QTD) spike. XRP’s market dominance has also increased to over 4%, with its 24-hour trading volume currently at $5.83 billion. The crypto has surpassed its 2021 all-time high price of $1.96, with its current price hovering around $2.43.
The recent surge in XRP’s price can be attributed to several key factors. One major catalyst is the approval of Ripple’s stablecoin, RLUSD. This development has ignited optimism among investors, who see the stablecoin as a significant milestone in Ripple’s growth trajectory.
Another significant factor contributing to XRP’s growth is the recent announcement of SEC Chair Gary Gensler’s departure. His tenure was marked by a hawkish approach to crypto regulation, including XRP adversely affecting its price due to the regulator’s lawsuit against Ripple Labs. Many in the crypto community have seen his departure as a positive move, including Ripple investors.
Interestingly, crypto analysts are bullish on XRP, with some predicting its price will double in this cycle.
USDT Experiences Decline
USDT, the world’s largest stablecoin, has experienced a decline in its market capitalization, dropping by 1.5% to $137 billion in the past week. This move marks its steepest weekly loss since November 2022, when the FTX collapse occurred. The decline is primarily attributed to the European Union’s Markets in Crypto-Assets (MiCA) regulations, which took effect last month.
The MiCA regulations impose strict requirements on stablecoin issuers, including holding at least 60% of reserves in low-risk EU-based commercial banks and ensuring a 1:1 backing with liquid assets. As a result, several European exchanges, including Coinbase Europe, have delisted the stablecoin to comply with the regulations.
The delisting has restricted USDT trading on MiCA-compliant centralized platforms, although users can still hold it in non-custodial wallets. This has led to a decline in USDT’s market capitalization and a shift towards other stablecoins, such as USDC, which has secured a MiCA license. The crypto community is keen to see how Tether navigates the regulatory hurdle.
