XRP has once again surpassed Tether’s USDt stablecoin to become the third-largest cryptocurrency by market capitalization, following only Bitcoin and Ether. As of January 3, XRP’s market capitalization reached $138.98 billion, overtaking USDt, which experienced a $1.6 billion decline in market cap since December 30. This shift coincided with the European Union’s introduction of Markets in Crypto-Assets Regulation (MiCA), which enforces stricter rules on stablecoin issuers, requiring them to maintain full reserves and obtain licenses within the EU.
On December 13, Coinbase Europe delisted USDT due to noncompliance with MiCA regulations. While questions persist about USDT’s compliance with the new rules, USDT remains the dominant stablecoin, accounting for 67.21% of the stablecoin market valued at $204 billion. Despite these regulatory challenges, USDT saw a user base increase of 11.7% in December, adding 21.9 million new users. USDC, launched by Coinbase and Circle, holds the second position among stablecoins with a market cap of $44 billion.
XRP’s recent gains can also be attributed to speculative interest surrounding a potential XRP exchange-traded fund (ETF). On December 2, WisdomTree became the fourth company to file for a spot XRP ETF with the US Securities and Exchange Commission, joining other firms like Bitwise and 21Shares. Furthermore, Ripple Labs’ launch of Ripple USD (RLUSD), a US dollar-backed stablecoin, has further buoyed XRP’s market performance. This stablecoin, aimed at facilitating cross-border transactions for enterprise clients, already boasts a market cap of $72 million.
Meanwhile, Tether continues to maintain significant market presence, primarily driven by activity on Tron, representing 53.8% of addresses. In contrast, USDC sees most of its activity on Solana, with significant traction on Ethereum’s Layer 2 Base as well.
