On January 3, 2025, XRP’s market cap ROSE to 138.98 billion USD, surpassing USDT’s 137.32 billion USD. This shift cements XRP’s status as the third-largest cryptocurrency. The market reaction was influenced by sustained Optimism surrounding political developments and ETF approvals for crypto assets.

USDT’s market cap decline is tied to stringent EU regulations on stablecoins, enforcing complete reserve holdings and licensing requirements. Despite these challenges, USDT continues to dominate the stablecoin landscape, accounting for 67.21% of the 204 billion USD stablecoin market.

XRP has seen a 17% price increase over two weeks and nearly 280% annual growth. This surge is fueled by speculation about a spot ETF approval, with multiple ETF filings with the SEC. Additionally, recent political events have instilled confidence in the market, promoting further investment in XRP.