XRP was able to recover the third position in the market after surpassing Tether (USDT), the largest stablecoin in the world. This comes after days in which USDT’s market capitalization skyrocket due to new issuance of USDT coins. This is the first time that a stablecoin reaches the third-largest position in the market.
USDT is backed by USD and its value is always close to $1,00. Indeed, it can experience price fluctuations but are always very close to $1,00. Considering that there are over 8.8 billion USDT in the market, the total valuation of this stablecoin is simply $8.8 billion.
Currently, XRP has a market capitalization of $8.84 billion that represents a supply of 44.11 billion XRP for a price of $0.2003. Obviously, XRP fluctuates like every other digital asset in the market that is not a stablecoin.
For example, it reached an all-time high of $3.84 per coin in January 2018 to later fall to $0.13 a few months ago amid the COVID-19 crisis.
XRP and USDT would remain in a head to head competition to see who will remain as the third-largest cryptocurrency. However, XRP is expected to win in the long and mid-term considering the upside potential this digital asset has and the fact that USDT can only increase its market cap if new USDT coins are released.