In a dramatic shift within the digital asset landscape, XRP has surged back into the top tier of cryptocurrencies, reclaiming its position as the third-largest by market capitalization—edging out stablecoin giant Tether (USDT). This pivotal development marks a significant milestone in the evolving crypto hierarchy and underscores renewed investor confidence in XRP’s long-term potential.
As of January 3, 2025, XRP surpassed USDT with a market cap of $141.06 billion**, compared to USDT’s $137.08 billion. Trading at $2.46**, XRP showed a 1.5% gain against the U.S. dollar, reflecting strong momentum at the start of the year. Unlike stablecoins, whose values are pegged to fiat currencies, XRP’s valuation is driven by market demand and price performance—factors that have aligned powerfully in its favor recently.
A Surge Fueled by Performance and Market Sentiment
Over the past two weeks, XRP has appreciated by 13.1%, while posting an astonishing 390% gain over the last 90 days. This explosive growth places it among the best-performing major cryptocurrencies during this period. Currently ranked sixth in global trading volume, XRP recorded $6.08 billion in daily trades, indicating robust liquidity and widespread adoption across exchanges.
The primary trading pairs for XRP include USDT, KRW (South Korean won), USD, USDC, and FDUSD, highlighting its integration into both global and regional markets. Notably, the surge in price triggered $1.78 million in derivative liquidations within a 24-hour window, suggesting increased leverage and speculative activity surrounding the asset.
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Strategic Moves from Ripple Fuel Investor Interest
A key catalyst behind the renewed attention on XRP was Ripple Labs’ strategic movement of 1 billion XRP tokens from escrow to its operational wallet on January 1, 2025. While such transfers are part of Ripple’s pre-announced token management strategy, the timing coincided with growing bullish sentiment, amplifying market reaction.
This release does not imply immediate selling pressure, as Ripple has consistently emphasized responsible token usage for ecosystem development, partnerships, and operational needs. Nevertheless, the transparency and predictability of these movements have helped build trust among institutional and retail investors alike.
Why XRP’s Market Cap Shift Matters
The fact that a volatile, non-pegged cryptocurrency like XRP has overtaken a dominant stablecoin like USDT in market cap is symbolically significant. Stablecoins typically rank high due to their widespread use in trading, hedging, and cross-border transactions. However, they do not appreciate in value—their purpose is stability.
XRP’s rise reflects a broader trend: investors are actively seeking high-growth digital assets with real-world utility. XRP is uniquely positioned in this regard, serving as a bridge currency for fast, low-cost international payments through RippleNet—a network adopted by financial institutions globally.
This resurgence also reignites discussions about the role of utility tokens versus stablecoins in the future of finance. While stablecoins provide stability and on-ramp liquidity, assets like XRP offer scalability, innovation, and return potential—making them attractive during bull cycles.
Market Dynamics and Investor Confidence
XRP’s performance since the beginning of 2025—up over 17% year-to-date—signals strong investor conviction. The token’s ability to maintain upward momentum despite broader market fluctuations demonstrates increasing resilience and maturity.
Moreover, regulatory clarity following past legal challenges has removed lingering uncertainty, allowing more institutional players to engage with the asset class. Analysts suggest that improved sentiment around fintech innovation, central bank digital currencies (CBDCs), and blockchain-based payment solutions has further boosted XRP’s appeal.
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Frequently Asked Questions (FAQ)
Why did XRP surpass USDT in market cap?
XRP surpassed USDT due to a combination of price appreciation and slight contraction in USDT’s supply. While USDT’s market cap dipped by nearly $3 billion from its peak above $140 billion, XRP gained momentum with a 390% surge over 90 days, driven by positive market sentiment, strategic developments from Ripple, and growing adoption.
Is XRP more valuable than USDT now?
In terms of market capitalization, yes—XRP briefly exceeded USDT in early January 2025. However, "value" depends on context: USDT maintains a stable $1 value and is widely used for trading and transfers, while XRP is a speculative and utility-driven asset with fluctuating value.
What caused the recent spike in XRP’s price?
Multiple factors contributed:
- Positive resolution of regulatory concerns
- Increased institutional interest in payment-focused blockchains
- Ripple’s transparent token management
- Broader crypto market rally at the start of 2025
- Growing integration of XRP in global remittance systems
Could XRP sustain its third-place ranking?
Sustainability depends on continued adoption, ecosystem growth, and overall market conditions. While USDT may rebound if its supply expands again, XRP’s underlying utility gives it strong fundamentals to remain competitive in the top tier.
How does XRP compare to other top cryptocurrencies?
Unlike Bitcoin (a store of value) or Ethereum (a smart contract platform), XRP specializes in cross-border payments, offering faster settlement times and lower fees than traditional banking systems. Its niche focus differentiates it from general-purpose blockchains.
Where can I securely trade or store XRP?
XRP is listed on major regulated exchanges worldwide and can be stored in compatible digital wallets like Ledger, Trust Wallet, or exchange-hosted wallets with strong security measures. Always prioritize platforms with proven track records in compliance and user protection.
The re-emergence of XRP as a top-three cryptocurrency highlights the dynamic nature of the digital asset space. It’s not just about size—it’s about innovation, utility, and timing. As blockchain technology continues to reshape global finance, assets like XRP serve as critical infrastructure for the next generation of financial services.
With increasing adoption in real-world payment solutions and growing confidence from investors, XRP’s journey in 2025 could set new benchmarks for what’s possible in decentralized finance.
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