XRP dethrones USDT, now ranked third largest crypto

XRP has reclaimed its spot as the third-largest cryptocurrency by market cap and trails just Bitcoin and Ethereum.

According to data from crypto.news, XRP’s market cap is nearing the $140 billion threshold. The token is already $2 billion more valuable than stablecoin issuer Tether which has a market cap of around $137 billion.

XRP has gained nearly 15% over the past seven days and is up nearly 350% over the past year.

Ripple’s recent rally has been ongoing for the past three days. This surge could be linked to Ripple Labs’ recent issuance of a US dollar-backed stablecoin, Ripple USD (RLUSD), which was launched last December.

There is also speculation that the Securities and Exchange Commission, under pro-crypto chairman Paul Atkins, may approve an XRP exchange-traded fund. So far, WisdomTree and Bitwise are among the firms vying to launch an XRP-based fund.

As XRP gained momentum, Tether’s market cap slipped by $1.6 billion, coinciding with the rollout of the European Union’s Markets in Crypto-Assets regulation. On Jan. 2, Tether lost 1.2% of its market cap after MiCA became effective on Dec. 30.

Tether has yet to recover from its $140 billion peak. On Dec. 13, Coinbase announced it would remove Tether from its listings due to the stablecoin’s non-compliance with MiCA regulations.

However, some experts believe Tether could still make a comeback. Roughly 80% of USDT’s trading volume comes from Asia, according to previous reports by crypto.news. This dominance in the Asian market could help Tether offset its EU losses by boosting trading activity in the region.