XRP Overtakes Tether as Third-Largest Cryptocurrency by Market Cap

XRP has regained its position as the third-largest cryptocurrency in terms of market capitalization, narrowly surpassing stablecoin issuer Tether. As of the latest update, XRP’s market cap is nearing the $140 billion mark, making it approximately $2 billion more valuable than Tether.

XRP Market Performance

Over the past seven days, XRP has experienced a significant gain of nearly 15%. Furthermore, the token has demonstrated a substantial increase of nearly 350% over the past year. This upward trend is indicative of XRP’s growing popularity and investor confidence.

Possible Factors Contributing to XRP’s Rally

Ripple Labs’ recent issuance of a US dollar-backed stablecoin, Ripple USD (RLUSD), may be a contributing factor to XRP’s surge. Additionally, speculation surrounding the potential approval of an XRP exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) could also be driving the token’s momentum. Notable firms such as WisdomTree and Bitwise are currently vying to launch an XRP-based fund.

Tether’s Market Cap Slips Amid EU Regulation

Conversely, Tether’s market cap has slipped by $1.6 billion, coinciding with the rollout of the European Union’s Markets in Crypto-Assets (MiCA) regulation. As a result, Tether lost 1.2% of its market cap after MiCA became effective on Dec. 30. Despite this, some experts believe that Tether’s dominance in the Asian market could help offset its EU losses by boosting trading activity in the region.

Tips for Investors:

  • Monitor XRP’s market performance and potential regulatory developments that may impact its value.
  • Consider the implications of EU regulations on stablecoin issuers like Tether.
  • Stay informed about the ongoing competition among firms vying to launch an XRP-based ETF.

It’s essential to stay up-to-date with the latest market trends and regulatory changes in the cryptocurrency space. As the market continues to evolve, investors must remain informed to make informed decisions.

Stay tuned for more updates on the cryptocurrency market and investment opportunities on Global Crypto News.

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