XRP is once again the third most capitalized cryptocurrency in the market, surpassing USDT.
Ripple’s native cryptocurrency has reclaimed its position as the third most-cap cryptocurrency, overtaking Tether’s stablecoin USDT. This milestone comes amid a growth in Ripple activity, a significant rise in XRP open interest, and the implementation of the Markets in Crypto-Assets Regulation (MiCA) in Europe, which has led to the exit of USDT from several platforms operating in the region.
With a market capitalization that reached $ 140.000 million dollars On January 3, XRP once again demonstrates its resilience and attractiveness in the crypto market.
Source: CoinMarketCap
The factors behind XRP's resurgence
XRP has seen a remarkable rally in recent weeks, driven by a combination of technical, regulatory and market factors.
One of the main drivers behind the growth of Ripple's native cryptocurrency, XRP, is the recent Launch of Regulated Stablecoin RLUSD. Approved by the New York Department of Financial Services (NYDFS) in mid-December, this new stablecoin has strengthened Ripple's position in the market and raised expectations about its future. Following its launch, the XRP price experienced a notable increase, reaching $2,70 per unit before correcting to approximately $2,11.
Source: CoinMarketCap
Furthermore, another key factor that is driving XRP's market cap is the growing open interest (OI) in derivatives markets, which has shown steady growth since December 31, according to data from Coinglass. This increase in open interest coincides with a surge in the price of XRP, which is currently above $2,44. Over the past week, the value of this cryptocurrency has risen by more than 13%, suggesting that traders are betting on a significant upward movement in the price of XRP.
Additionally, the XRP daily trading volume The cryptocurrency's spot market volume has reached record levels, with a 100% increase since the beginning of this year. Data from the CoinMarketCap platform shows that the trading volume for this cryptocurrency closed at around $4.000 billion on December 31. However, at the time of writing this article, it exceeds $XNUMX billion. $8.300 million dollars. This is the highest volume seen in 11 days, indicating renewed interest from investors and traders in Ripple's cryptocurrency.
Source: Coinglass
MiCA's impact on USDT and the rise of XRP
The implementation of MiCA in the European Union has had a significant impact on the stablecoin market, particularly on USDT. MiCA requires stablecoin issuers to maintain full reserves and obtain licenses to operate within the EU, which has led to the exit of USDT from several platforms. This has apparently benefited XRP, which has taken advantage of the situation to consolidate its position in the market.
According to the data, the market capitalization of USDT has decreased by $ 1.600 millones since December 30, while XRP has seen a 13% increase in its price over the past week, trading at $2,44, at the time of this writing. This growth has been supported by the launch of RLUSD, which will be integrated into Ripple Payments in early 2025 to facilitate cross-border transactions.
Source: CoinMarketCap
The launch of RLUSD not only represents a step forward for Ripple, but also sets up a direct competition with giants in the stablecoin sector. Backed by US dollar deposits and government bonds, RLUSD seeks to offer stability and confidence in the market. Moreover, the addition of former central bankers to Ripple’s advisory board further reinforces this credibility, bringing vast experience in financial regulation.
In line with the above, NYDFS approval is crucial to differentiate RLUSD from other stablecoins, providing users with an additional guarantee of security and transparency. Ripple has also implemented a robust framework that includes regular audits to ensure the integrity of its stablecoin, which is interoperable between the XRP Ledger and Ethereum networks, facilitating its adoption and use.
Is an XRP ETF coming this year?
Another factor that has contributed to XRP's momentum and the optimism of its community is speculation surrounding a potential XRP spot exchange-traded fund (ETF). In early December, WisdomTree became the fourth company to file an application for an XRP ETF with the US Securities and Exchange Commission, joining Bitwise, Canary Capital y 21Shares in this race. The presentation has raised positive expectations in the market, considering that spot ETFs tend to attract institutional investors and increase the liquidity of the underlying assets.
Thus, while USDT faces regulatory challenges in Europe, XRP has taken the opportunity to consolidate its position, supported by a surge in open interest, record trading volumes and positive expectations about its future and a potential spot ETF.
To date, XRP has seen a 320% increase in price over the past year, making it one of the best-performing cryptocurrencies in 2024.
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