Earlier today, Tether surpassed XRP as the 3rd largest cryptocurrency by market capitalization, becoming the 2nd-largest altcoin after Ethereum [ETH].
At the reporting time, USDT market capitalization accounts for over $13.4 Bln, consistent with data from the crypto analytics website CoinMarketCap. XRP is now the 4th-largest coin by market cap at $13 Bln.
The latest movement in the ranking isn’t new to the cryptocurrency ecosystem in 2020. Tether surpassed XRP as the 3rd-largest asset earlier in the month of May 2020.
Both cryptocurrencies have significantly increased their market cap since then. As reported, Tether earlier also surpassed XRP at a market cap of about $8.8 Bln, while XRP’s market capitalization accounted for $8.6 Bln at the time.
XRP’s drop comes shortly after a senior Ripple exec claimed that XRP isn’t competing with stable coins. Earlier on 19th Aug., Emi Yoshikawa, senior director of global operations at Ripple, argued that XRP doesn’t compete with either stablecoins or CBDC.
In line with Yoshikawa, XRP is complementary to the worldwide progress in stablecoin & CBDC development. While explaining further, the executive added:
“We believe that various stablecoins & CBDCs will create synergy by responding to the liquidity problem by bridging independent crypto assets, XRP.”
Tether’s new market capitalization milestones come amid massive growth in stablecoins this year. Both Tether & USD Coin [USDC] are hitting new milestones, with USDC breaking $1 Bln market cap earlier in July this year.
Opposed to highly volatile crypto assets like Bitcoin [BTC], stablecoins like USDT are designed to offer a digital representation of fiat currencies like USD & ensure a “stable” price pegged to the USD in the ratio of 1:1, Tether’s price is usually equal to 1 USD.