XRP Overtakes Tether: A Significant Achievement in the Cryptocurrency Market

XRP has kicked off the new year with a powerful surge, now ranking as the third-largest cryptocurrency by market capitalization, surpassing Tether's USDT.

XRP began the new year with an impressive surge, now ranking as the third-largest cryptocurrency by market capitalization after surpassing Tether’s USDT. With a market cap exceeding $141 billion, XRP’s stellar performance marks a significant milestone, especially as it continues to gain traction in the cross-border payments sector.

As XRP surges, Tether (USDT) market cap drops

Recent data shows that XRP’s surge comes at a time when Tether’s USDT market capitalization hovers just above $137.4 billion. This shift is largely attributed to the rollout of the European Union’s Markets in Crypto-Assets Regulation (MiCA), which imposes more stringent regulations on stablecoin issuers.

As part of MiCA, stablecoin issuers are required to maintain full reserves and obtain licenses to operate within the EU. This has raised compliance concerns, particularly for Tether, which may have negatively impacted USDT’s value.

Coinbase Europe delisted USDT in December due to MiCA compliance issues, a move that may have further weighed on Tether’s market capitalization. In contrast, XRP has benefited from this regulatory shift, which could position the cryptocurrency for continued success in the coming months.

XRP’s stellar performance over the past year

Over the past year, XRP has shown an impressive upward trajectory. From November to December, the cryptocurrency surged by more than 400%, with its price peaking at $2.70. The rally was fueled by several significant events.

These events include speculation about the approval of an XRP exchange-traded fund (ETF) and a potential pro-crypto political shift following Donald Trump’s election victory. Additionally, Ripple Labs, the company behind XRP, launched Ripple USD (RLUSD), a stablecoin designed to facilitate cross-border enterprise payments. This development has further strengthened XRP’s utility in the financial sector and provided a boost to its price.

XRP ETF filings and growing institutional interest

XRP’s growing momentum has also been fueled by increased institutional interest. Recently, WisdomTree became the fourth company to file for a spot in an XRP ETF, joining other major players such as Bitwise and 21Shares. This move highlights growing institutional support for XRP as an investment vehicle, with broader adoption of XRP payment solutions likely driving future price gains.

Ripple CEO’s optimism for 2025

As XRP continues to surge, Ripple CEO Brad Garlinghouse recently expressed optimism about XRP’s future, citing “momentum and increased focus on real-world utility” as key drivers for growth in 2025. His outlook reflects growing confidence in XRP’s ability to continue performing well in the market, especially as Ripple strengthens its position in the cross-border payments space.

XRP technical outlook: Bullish trend and resistance levels

Technically, XRP is currently in a strong uptrend on the price charts. The cryptocurrency is trading above both the 50-day and 200-day moving averages, indicating that the bulls are firmly in control. The price is approaching the $2.60 resistance level after bouncing off the $1.98 support zone. The Relative Strength Index (RSI) is at 61, suggesting that there could still be room for price increases before a trend reversal occurs.

With favorable regulatory shifts and growing institutional support, XRP is well-positioned for further growth in the coming months. The approval of ETFs and broader adoption of Ripple’s payment solutions could continue to propel its market performance as the cryptocurrency sector enters an exciting new chapter.