XRP has surpassed Tether's USDT stablecoin to become the third-largest cryptocurrency by market capitalization.

The recent shift in the cryptocurrency market has seen XRP's market cap reach approximately $138.98 billion, while USDT has experienced a decline of $1.6 billion.

Regulatory Impact

The implementation of the European Union's Markets in Crypto-Assets Regulation (MiCA) has led to stricter regulations for stablecoin issuers. This has raised concerns about USDT's compliance with MiCA, resulting in a decline in its market share.

XRP's Rally and New Stablecoin

XRP's recent rally is fueled by market sentiment and speculation about a potential spot XRP exchange-traded fund (ETF). Additionally, the launch of Ripple Labs' new stablecoin, Ripple USD (RLUSD), has contributed to XRP's price performance.

USDT's Dominance and Growing User Base

Despite the challenges faced by USDT, it continues to dominate the stablecoin market, accounting for 67.21% of the stablecoin market. The user base for USDT grew by 11.7% in December, indicating a resilient demand for the stablecoin.

Rapidly Evolving Financial Landscape

The ongoing developments in the cryptocurrency market, including regulatory frameworks and the performance of major players like XRP and USDT, reflect a rapidly evolving financial landscape.