XRP Surges Past USDT to Become Third Largest Crypto by Market Cap

Ripple’s XRP jumped 30% on Monday and surpassed USDT in market cap, becoming the third-largest cryptocurrency. The surge extended a multiweek rally fueled by recent catalysts.

The token last traded at around $2.46, up 77% in a week and over 375% in a month. Its market cap hit $137.4b, overtaking USDT’s $134.3b. XRP’s value surged after it surpassed Solana in market cap over the weekend.

Ripple Eyes NYDFS Approval for RLUSD Stablecoin, Targets Dec. 4 Launch

Analysts link the token’s recent strength to news that the New York Department of Financial Services (NYDFS) may soon approve Ripple’s RLUSD stablecoin. According to Fox Business , insiders suggest NYDFS could greenlight RLUSD , with Ripple targeting a Dec. 4 launch.

This approval would let Ripple enter New York’s strict digital finance market, boosting its standing in the stablecoin ecosystem. RLUSD would position Ripple to compete directly with major stablecoins like Tether’s USDT and Circle’s USDC.

Ripple plans to integrate RLUSD into its RippleNet payment platform to speed up and lower the cost of cross-border payments. The stablecoin is set to act as a liquidity bridge in Ripple’s network, complementing XRP, which has faced regulatory hurdles in the US.

XRP ETF Hopes Rise as Issuers Await Regulatory Green Light in the US

XRP’s price momentum began in early November after Republican wins in the US elections boosted confidence in US-linked cryptocurrencies like Ripple Labs’ XRP. Additionally, investors anticipate an XRP exchange-traded fund (ETF) in the US, fueled by hopes for a more lenient regulatory environment.

No XRP ETF has launched yet in the US, but potential issuers are preparing for favorable regulatory developments. Approval could mark a significant step in making XRP accessible through traditional investment channels.

Another factor in XRP’s surge is SEC Chair Gary Gensler’s recent announcement that he will resign in January . His departure might impact Ripple’s ongoing legal battle with the SEC over allegations of selling unregistered securities.

The SEC sued Ripple Labs in Dec. 2020, accusing the company of selling XRP without registering it as a security. This lawsuit severely impacted XRP’s market position and value, leading to delistings on many exchanges and a sharp drop in price.