 XRP flips USDT again to become the 3rd-largest crypto by market cap 
2025-01-03
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XRP has flipped Tether’s USDt stablecoin to claim its spot as the third-largest cryptocurrency by market capitalization, trailing only Bitcoin and Ether.
The market cap of XRP XRPUSD surged to $138.98 billion on Jan. 3, surpassing USDt USDTUSD, which saw a $1.6 billion decline in market cap since Dec. 30, coinciding with the rollout of the European Union’s Markets in Crypto-Assets Regulation (MiCA).
At the time of publication, XRP was trading at $2.43, up 17% in the last 14 days, according to CoinGecko. Over the past year, XRP has risen nearly 280%.
USDT’s decline in market share comes as the MiCA framework enforces stricter rules for stablecoin issuers. The regulations require stablecoin issuers to maintain full reserves and obtain licenses to operate within the EU.
On Dec. 13, Coinbase Europe delisted USDT, citing noncompliance with MiCA. Coinbase and Circle jointly launched USD Coin USDCUSD in 2018, and the exchange has an equity stake in Circle. In March 2023, USDC slipped below its $1 peg after Silicon Valley Bank collapsed. 
European regulators have yet to confirm whether USDT fully complies with the MiCA regulations.
XRP gains momentum amid ETF speculation
This is not the first time XRP has flipped USDT. On Dec. 1, XRP flipped both Solana (SOL) and USDT in market cap rankings.
XRP’s recent rally began after Donald Trump’s victory in the United States presidential election on Nov. 5, which boosted broader market sentiment driven by expectations of pro-crypto policies under the incoming administration.
Speculation around a spot XRP exchange-traded fund (ETF) has also fueled XRP’s momentum. On Dec. 2, WisdomTree became the fourth company to file for a spot XRP ETF with the US Securities and Exchange Commission, joining Bitwise, Canary Capital and 21Shares. 
Bitwise and 21Shares were also among the first issuers of spot Bitcoin (BTC) ETFs in January 2024.
XRP’s outsized price performance comes amid Ripple Labs launching Ripple USD (RLUSD), a US dollar-backed stablecoin, on Dec. 17. The stablecoin is set to integrate into Ripple Payments in early 2025 to facilitate cross-border transactions for enterprise clients. 
RLUSD has already amassed a market cap of $72 million, according to CoinGecko.
Tether remains the dominant stablecoin
Despite the dip, Tether continues to dominate the stablecoin market. 
As of December, USDT accounts for 67.21% of the $204 billion stablecoin market, according to data from DefiLlama. Coinbase’s USDC, the second-largest stablecoin, trails behind at $44 billion in market cap.
Despite ongoing fear, uncertainty and doubt, or FUD, the USDT user base grew by 11.7% in December, adding 21.9 million new users, up from 19.6 million in November, according to a Dune dashboard. In comparison, USDC saw a 24% increase in new addresses, with 5.7 million created in December, rising from 4.57 million the previous month.
Most USDT activity remains on Tron, accounting for 53.8% of addresses. USDC, on the other hand, sees the most traction on Solana, where 30% of its users reside, followed by Ethereum layer 2 Base with 6.5%.