XRP Reclaims Third Spot in Market Cap Battle as Japanese Banks Embrace It for Cross-Border Payments

Ripple Labs’ XRP has reclaimed its spot as the third-largest cryptocurrency by market capitalization, surpassing Tether (USDT).

Cryptocurrency XRP, issued by Ripple Labs, has reclaimed its position as the third-largest cryptocurrency by market capitalization, overtaking Tether (USDT). XRP is currently trading at $2.42 per token, up 1.12% today. Over the past week, XRP has seen a 13.46% increase, boosting its market capitalization to $141.12 billion, up from $121 billion in just seven days.

In the rankings, XRP is now valued higher than USDT, with a market capitalization of $137 billion. This rivalry for the third spot has been particularly evident during the market retraction in December.

Recent developments in Asia have played a crucial role in XRP's market performance, boosting investor sentiment and contributing to its latest rally.

Japanese Banks to Integrate XRP for Cross-Border Payments

One of the key factors driving XRP's performance is its growing adoption in Japan. Reports indicate that up to 80% of the Japanese banking sector could integrate XRP into their cross-border payment systems via the XRP Ledger.

This development has significantly boosted market confidence, aiding XRP in its recovery from December lows of $2.02.

When this potential deal was first reported, XRP was trading at $2.17, having already gained 11.52% in value at the time. This market response underscores the importance of Ripple's partnership with Japanese banks, further solidifying XRP's role in digital payments.

XRP Price Analysis: Key Resistance at $2.90 in Sight

Currently trading at $2.42, XRP has reclaimed a critical price level that has served as both support and resistance in the past. This zone played a pivotal role during XRP's historic rise to $3.32 in 2018 and remains a key level to watch.

As we look ahead, XRP could be set for another strong rally as major events unfold in the U.S. government. On January 20, Donald Trump will be sworn in as President, a development that has already sparked optimism in the cryptocurrency market.

Trump's presidency is anticipated to usher in a more crypto-friendly regime, potentially creating favorable conditions for XRP and other digital assets.

SEC Leadership Change to Impact XRP on January 20

Significantly, on the same day as Trump's inauguration, SEC Chair Gary Gensler will step down, a move that could have an even greater impact on XRP's future. Gensler's staunch opposition to cryptocurrency innovation has seen Ripple Labs bear the brunt of his policies.

Since the November 5 election, XRP's value has surged as the market anticipates a shift in regulatory attitudes under new SEC leadership. Gensler's departure could trigger heightened market volatility, especially for XRP, as investors adjust to a potentially more crypto-friendly regulatory landscape.

XRP Poised for Further Gains in 2025 Outlook

With strong partnerships in Asia, recovering market confidence, and impending U.S. regulatory changes, XRP is setting the stage for long-term growth. As the cryptocurrency continues to gain momentum, traders and investors are keeping a close eye on XRP's next move, particularly the potential for a rally toward the $2.90 resistance zone.