XRP Kicks Off 2023 bydethroning Tether (USDT) to Reclaim Spot as Third-Largest Cryptocurrency

XRP has started the new year on a positive note, now ranking third on market capitalization. The cross-border payment-focused cryptocurrency has now overtaken Tether's USDT to become the third-largest cryptocurrency with a market cap of more than $141 billion.

Cross-border payment cryptocurrency XRP has ranked third in the top crypto market capitalizations, following a positive start to the new year.

According to data from CoinMarketCap, XRP now ranks third with a market cap of over $141 billion, surpassing Tether's USDT, which now has a market capitalization of slightly above $137.4 billion.

This shift coincides with the rollout of the European Union's Markets in Crypto-Assets Regulation (MiCA), which imposes stricter rules on stablecoin issuers. MiCA mandates full reserves and licenses for issuers operating in the EU, prompting concerns about compliance among key players like Tether. Notably, Coinbase Europe announced that it would be delisting USDT in December over MiCA compliance concerns, a factor that could have negatively affected the price of the stablecoin.

As reported by Coinpedia, XRP's market capitalization had already surpassed USDT's in April 2023, following a significant rally driven by favorable market conditions, increased investor interest, and shifting regulatory landscapes.

At the time, XRP's market cap reached $44.9 billion, while USDT's capitalization was at $43.8 billion. This shift was largely attributed to the broader market rally and anticipation of key developments, such as the launch of Ripple's stablecoin, Ripple USD (RLUSD).

In the broader timeframe, XRP has shown a fluctuation in price on the monthly chart. Commencing the year at $0.7, XRP price showed a strong performance over the past year, rising more than 400% between November and December and peaking at $2.7.

The price increase was driven by events such as Donald Trump's pro-crypto presidential election victory and speculation around an XRP exchange-traded fund (ETF). Recently, WisdomTree became the fourth company to file for a spot in XRP ETF, joining other major issuers like Bitwise and 21Shares.

A Message from Ripple Labs' CEO

As the new year started with a massive XRP transfer of 500 million tokens (worth over $1 billion), tracked by blockchain analytics firm Whale Alert, Ripple's CEO Brad Garlinghouse expressed optimism for 2025, citing "momentum and increased focus on real-world utility."

From a technical perspective, XRP is in a clear uptrend, currently trading above the 50 and 200 moving averages. The price is approaching the $2.6 resistance level after bouncing off the $1.98 support level. The Relative Strength Index (RSI) is at 61, meaning the price could rise further before any change in trend can be seen.

With the regulatory climate becoming potentially more favorable, especially after SEC Chair Gary Gensler's resignation, XRP appears well-positioned to soar as high as $10 in 2025. ETF approvals and broader adoption of Ripple's payment solutions may continue to propel its market performance.