With many recent fluctuations and the visible growth of Tether, Ripple may have taken its place in the dispute for third place in market capitalization.
To Ripple’s concern, the market value of the Tether dollar (USDT) has been growing steadily. This was even confirmed by Tether’s own CTO, Paolo Ardoino, who said:
The recent market instability has shown that there is a huge demand for Tether. Investors are looking for a safe haven to reduce the risks in their portfolios.
Precisely due to the growing market demand, Tether is increasing the issuance of its USDT token. To date, more than $ 8.6 billion has formed officially launched in the market and this illustrates the constant growth, as evidenced by new emissions.
Tether’s market capitalization
In reality, the total USDT created is already over 8.7 billion dollars but there are 126 million of them that are not in circulation. In particular, there are 132 million USDT on Ethereum and 107 million on TRON, which have already been authorized but not yet issued and could be launched soon if market demand increases.
Therefore, although total USDT market capitalization is 8.6 billion, it may exceed 8.8 billion dollars in the near future.
Fierce competition with Ripple
The XRP’s market capitalization, Ripple’s cryptocurrency, is about $ 8.7 billion, but there is a difference. While the market value of the USDT grows steadily, that of the XRP is alternating, so much so that it has already dropped several times below 8.5 billion recently.
In addition, its value has been showing an average decline since the peak reached in early January 2018, when it hit $ 145 billion. After the bursting of the speculative bubble, it fell to 27 billion and then fell below 20 billion in August of the same year.
In September, it fell to 11 billion, a correction of more than 90% compared to just nine months earlier. Since then, it has continued to vary between 10 and 20 billion until November 2019, when it first reached 9 billion and then hit 8 billion dollars.
What we notice today, even in the case of XRP, is a fluctuation between 8 and 15 billion until its collapse in mid-March, when we saw a drop to 6 billion. Since then, the price has continued to fluctuate between 8 and 10 billion, making it possible to be overtaken by the USDT, especially since the stablecoin has been showing significant growth.
As a result, it may only be a matter of time before the USDT becomes the third cryptocurrency by market capitalization. However, XRP is a token backed by fiat currency, the value of which is controlled by a centralized entity. Thus, there are still those who refrain from classifying it as cryptocurrency.
Either way, take care XRP!