XRP Up Position, USDT Slips From Crypto Cap Market Ranking Board

XRP crypto assets. (Photo; Doc. Coingape)

JAKARTA - On January 6, 2025, XRP, Ripple's original token, managed to overtake Tether (USDT) to claim third place in the crypto market cap, after Bitcoin and Ethereum.

The soaring market capitalization of XRP, which has now reached 137.68 billion US dollars (around Rp2,229 trillion), occurred amid a decline in USDT's market capitalization which recorded a loss of around US$1.6 billion (Rp25.9 trillion) since the end of December 2024. One of the factors that affected this decline was the implementation of the European Union's crypto market regulation, MiCA, which further suppressed the stablecoin market.

XRP, which is currently trading for $2.38 per token, has recorded a 15% increase in the past seven days, and nearly 320% in the past year.

However, XRP remains at around 29.9% below its all-time high (ATH), which is $3.40 which was recorded seven years ago. Sharp market fluctuations indicate that XRP's position in third place may not last long, given market volatility that can change at any time.

Another factor that contributed to XRP's momentum was the emergence of expectations for the launch of the XRP ETF. In early December 2024, WisdomTree submitted an application for the XRP ETF to the US Securities and Exchange Commission (SEC), joining other companies such as Bitwise, Canary Capital, and 21Shares which had previously submitted similar applications for Bitcoin. The success of this submission can strengthen XRP's position in the market.

Not only that, Ripple also launched Ripple USD (RLUSD), a stablecoin backed by the US dollar, which is expected to increase cross-border transactions, especially for corporate clients. With an RLUSD market cap that has reached 72 million US dollars (Rp1.17 trillion), this adds to Ripple and XRP's overall appeal.

On the other hand, although USDT still controls the stablecoin market, with a market cap of $137.15 billion, the decline in the market share of the largest stablecoin reflects the uncertainty facing the crypto market, especially with the new MiCA regulation that is starting to be implemented in Europe.

USDT was also affected by the European Coinbase decision to remove USDT from their list on December 13, 2024, for alleged non-compliance with MiCA regulations.