XRP has surpassed Tether's USDT to become the third-largest cryptocurrency by market capitalization, reaching $138.98 billion on January 3, 2025. This surge followed a $1.6 billion decline in USDT's market cap due to the EU's implementation of the MiCA framework, which imposes stricter regulations on stablecoin issuers, including requirements for full reserves and operating licenses. XRP's price increased to $2.43, reflecting a 17% rise over 14 days and a staggering 280% increase over the previous year. The decline of USDT is notable despite a 11.7% growth in its user base in December 2024. XRP's rally is also attributed to speculation about a potential spot XRP ETF and is bolstered by Ripple's upcoming stablecoin, RLUSD, set to launch in early 2025. This marks XRP's second flip of USDT, having previously done so on December 1, 2024. The overall stablecoin market remains largely dominated by USDT, which accounts for over two-thirds of the market, while USDC follows with significantly less market valuation.

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