XRP Overtakes USDT to Become the Third Most Valuable Crypto Asset

Ripple’s XRP has continued its impressive run in recent weeks, outperforming Solana (SOL) and Tether (USDT) to become the third-largest cryptocurrency by market capitalization. According to CoinGecko, XRP currently has a market cap of $139.13 billion, compared to USDT’s market cap of $133.84 billion and SOL’s $108.9 billion. 

XRP’s Rally

The latest development comes amidst a consistent upsurge in the price of XRP over the past month. CoinGecko’s data shows that XRP has risen by over 370% since last month, 108% over the past two weeks, 66% since last week, and 30% over the past 24 hours.

XRP traded at $2.42 at press time, reaching its highest level since 2018, when it hit an all-time high (ATH) of $3.40. At $2.42, the digital asset is just 27.77% shy of its peak set on January 7, 2018.

XRP’s remarkable growth can be attributed to several factors. One of them is the optimism surrounding the potential approval of an XRP spot exchange-traded fund (ETF) in the US. 

In recent months, several investment firms, Canary Capital, Bitwise, and Wisdom Tree, separately filed S-1 registration forms with the US Securities and Exchange Commission (SEC) to offer a spot XRP ETF in the country. If approved, the investment vehicle is expected to bring significant capital inflow into XRP, which could further boost its value.

XRP Responds to Gensler’s Departure 

XRP’s price could also be responding to Gary Gensler’s imminent departure as SEC chair. In a recent tweet, Gensler stated that he would be stepping down on January 20—the same day Donald Trump will be inaugurated as the 47th US president.

Under Gensler’s leadership, Ripple has been in a three-year-long legal tussle with the SEC over the classification of XRP. While the agency deemed XRP a security based on the Howey Test criteria, Ripple argued that it is a digital asset. While Ripple secured a partial victory when a US judge ruled that the sale of XRP to retail investors does not constitute a security sale transaction, there are still several unresolved issues in the case.

Trump has promised to appoint a more crypto-friendly candidate to lead the SEC following Gensler’s departure. This will significantly increase the odds of a spot XRP ETF approval and Ripple’s victory against the SEC.