Tether surpassed XRP in terms of market cap again as it did a while ago when we reported in our tether news here on DC Forecasts.
The biggest stablecoin by market capitalization Tether surpassed XRP in terms of market cap again and is now the second-largest altcoin after Ethereum. The market cap of USDT hit $13.4 billion according to the data from the crypto analytics website Coin360 while XRP remains the fourth-biggest coin by market cap at $13 billion. Tether has previously surpassed XRP back in May this year as we reported in the Tether coin news.
Both cryptocurrencies increased their market cap since May and Tether even surpassed XRP at a market cap of about $8.8 billion while Ripple’s market cap accounted for $8.6 billion at that time. The price drop came shortly after a senior Ripple executive claimed that XRP is not competing with other stablecoins. Emi Yoshikawa who is a senior director of global operations at Ripple argued that XRP doesn’t compete with stablecoins or central bank digital currencies.
“We believe that various stablecoins and CBDCs will create synergy by responding to the liquidity problem by bridging independent crypto assets, XRP.”
Tether’s new market capitalization milestone came during the massive growth in stablecoins this year. Tether and the USDC coin have both been hitting major milestones as USDC broke past the $1 billion in 2020. Opposed to the high volatility crypto assets such as BTC, stablecoins like Tether’s USDT are created to provide a digital representation of fiat currencies like the US dollar in order to ensure a stable price. Pegged to the USD one-to-one, USDT’s price is always equivalent to one Dollar.
Providing a “stable” cryptocurrency, Tether is now the largest crypto in terms of daily transaction volume. USDT’s daily trading volume hit over $10 billion, surpassing Bitcoin’s $9.5 billion according to the data from Coin360. Tether is also bigger than the biggest payment processor PayPal in regards to daily transfer volume.
Also, as recently reported in our tether cryptocurrency news, the stablecoin plans supporting ZK-rollups in order to reduce the pressure on the Ethereum network after the integration with the OMG network. ZK-Rollups is a zero-knowledge proof technique that helps the rollup or bundle many transactions into one single transaction and therefore will reduce the pressure on Ethereum.
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