XRP Overtakes Tether as Third Largest Crypto Amid Stablecoin Shakeup
January 2, 2025Adding to the concerns, Coinbase has already delisted USDT trading pairs, raising further questions about USDT's future in the EU market.
On January 1, 2025, XRP experienced a significant surge, climbing above $2.40 and reclaiming its status as the world's third largest cryptocurrency by market capitalization, overtaking Tether's USDT.
Amidst these developments, crypto users have started discussing the term 'Un-Tethering', which reflects concerns over USDT potentially being delisted from European exchanges due to compliance issues with MiCA.
MiCA regulations came into full effect on December 30, 2024, creating comprehensive rules for cryptocurrencies in the EU, and Tether faces pressure to comply within six to twelve months depending on the jurisdiction.
As of late January 1, 2025, XRP's market cap reached $138.2 billion, while Tether's market cap was slightly lower at $137.1 billion.
This surge in XRP's value, which saw a 15% increase on that day and a remarkable 270% rise throughout 2024, followed a recovery from a market crash in mid-December.
The price increase coincided with Ripple's new stablecoin, RLUSD, stabilizing at $1, while USDT was trading around $0.998.
Ripple, as the largest holder of XRP, stands to gain from the growing adoption of RLUSD, which is regulated by the New York State Department of Financial Services.
Since its launch in mid-December 2024, RLUSD has gained traction, being included in Uphold's Rewards program and made available on MoonPay, a platform compliant with the EU's Markets in Crypto-Assets Regulation (MiCA).
The impact of RLUSD on the stablecoin market remains uncertain, particularly in terms of its ability to compete against Tether's long-standing dominance.
Summary based on 1 source
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Source
International Business Times • Jan 2, 2025
$XRP Returns To Top 3 As $RLUSD Trades Higher Than $USDT – Effect Of Upcoming 'Un-Tethering'?