Tether Takes the Crown: A Rollercoaster of Stablecoins and XRP

Tether Outshines XRP: A New Ranking in Crypto

In a surprising turn of events that would put even the best soap operas to shame, Tether (USDT)—the heavyweight champion of stablecoins—has reclaimed its title, overtaking XRP as the third-largest cryptocurrency by market capitalization. As of September 1, Tether boasts an impressive market cap of over $13.4 billion, leaving XRP with a mere $13 billion in its crypto wallet.

The Stablecoin Surge

This isn’t the first rodeo for Tether, who previously put XRP in its place back in May 2020. Fast forward a few years, and both contenders have beefed up their market caps like gym-goers after New Year’s resolutions. Tether has flexed its economic muscles from a market cap of $8.8 billion to its current heights, while XRP saw a rise from a paltry $8.6 billion. You can’t help but feel a bit of competitive spirit in the crypto ring.

XRP’s New Outlook

Just as the dust was settling, XRP faced another challenge, courtesy of Ripple’s senior director, Emi Yoshikawa, who claimed that XRP is not in direct competition with stablecoins like Tether or even Central Bank Digital Currencies (CBDCs). She suggested that XRP complements the ecosystem by solving the liquidity conundrum, acting as a bridge for different crypto assets. Think of it as the friend who introduces you to more friends—except these friends can potentially make financial transactions faster!

The Ascent of Stablecoins

Stablecoins, particularly Tether and USD Coin (USDC), are riding the wave of massive growth this year. USDC recently hit a milestone of its own, crossing the $1 billion mark just last July. Unlike Bitcoin and other rollercoaster cryptocurrencies that have investors experiencing dizzying highs and lows, stablecoins are here to maintain the peace, like a trusty old family sedan in a world full of Ferraris.

Tether’s Dominance in Daily Transactions

In the daily trading arena, Tether is the undisputed champion, racking up over $10 billion in daily trading volume—outdoing even Bitcoin, which sits at $9.5 billion. It’s safe to say that, in the game of digital money, Tether isn’t just a stable friend; it’s the friend who also doubles as your personal banker. Remarkably, Tether has outpaced traditional payment behemoths like PayPal in terms of average daily transfer volumes!