The market cap of Tether (USDT) has officially surpassed Ripple (XRP), and now Tether (USDT) has claimed the #3 spot on CoinMarketCap. This means that only Bitcoin (BTC) and Ethereum (ETH) have a higher market cap than Tether (USDT).
Specifically, Tether (USDT) now has a market cap of $8.8 billion, while Ripple (XRP) has a slightly lower market cap of $8.6 billion. These market caps are still fairly close, but the momentum has been with Tether (USDT), and it seems likely that Tether (USDT) will substantially widen its lead over Ripple (XRP) in the coming months.
Indeed, the market cap of Tether (USDT) has skyrocketed $4.7 billion since the beginning of the year, which is a 115% increase.
Zooming out, this is indicative of the surging popularity of stablecoins. Essentially, stablecoins are replacing regular fiat across the crypto space. Stablecoins are highly liquid and can be instantly moved between crypto exchanges and platforms, whereas regular fiat can take days to deposit and withdraw since it depends on banks.
Notably, the popularity of stablecoins is really obvious when looking at volume figures. Although Tether (USDT) has barely surpassed Ripple’s (XRP) market cap, Tether (USDT) has 32X more volume than Ripple (XRP). Further, Tether (USDT) even has a higher volume than Bitcoin (BTC), at least at this moment.
Ripple (XRP) has been dethroned by Tether (USDT) due to a surge in stablecoin adoption. Now the question is, is it possible that Tether (USDT) will eventually overtake Ethereum’s (ETH) market cap? That seems like a crazy idea now, but at the beginning of this year it would have been crazy to think that Tether (USDT) would overtake Ripple’s (XRP) market cap. Only time will tell.