Ripple’s XRP Reclaims Third Spot After 9% Surge Amid Stablecoin Launch Announcement

Ripple’s native cryptocurrency, XRP, surged by over 9% on Tuesday, reclaiming the third spot in the cryptocurrency market rankings by market capitalization.

XRP Surges Past USDT

The latest price surge pushed XRP to a multi-day high of $2.60, marking a dramatic rebound from its earlier position below $2.40. With its market capitalization climbing to $148.5 billion, XRP surpassed the stablecoin Tether (USDT) to regain its place as the third-largest cryptocurrency behind Bitcoin (BTC) and Ethereum (ETH).

The surge reflects renewed investor enthusiasm for Ripple’s ecosystem, particularly as the company positions itself more prominently in the rapidly growing stablecoin market. RLUSD, Ripple’s stablecoin pegged 1:1 to the U.S. dollar, is expected to strengthen liquidity and trust for institutional payments within the XRP ecosystem.

Bitcoin Inches Toward $108,000

Meanwhile, Bitcoin, the leading cryptocurrency, maintained its bullish trajectory and came within striking distance of $108,000 earlier on Tuesday. After a brief dip, BTC stabilized above $107,000, boosting its market capitalization to $2.1 trillion and further solidifying its dominance at 54% of the total market.

The BTC rally has been fueled by strong institutional inflows and investor optimism as it continues to chart fresh all-time highs. Notably, the price has risen significantly from last week’s $94,400 lows.

Ripple’s RLUSD Sparks Optimism

Ripple’s announcement of RLUSD has been a major catalyst for XRP’s price action. Approved by the New York Department of Financial Services (NYDFS), RLUSD is designed to compete in the $209 billion stablecoin market currently dominated by Tether and USDC.

Initially available on platforms like Uphold, Bitso, and MoonPay, RLUSD will be launched on both the XRP Ledger and Ethereum blockchain, ensuring broad accessibility. Ripple CTO David Schwartz acknowledged that the stablecoin could face initial liquidity challenges but emphasized that RLUSD will stabilize around its $1 peg as adoption grows.

“Liquidity may create short-term volatility, but RLUSD will maintain its $1 value through arbitrage,” Schwartz reassured in a statement.

XRP’s Bullish Resurgence in 2024

XRP has been one of the standout performers of 2024, bolstered by shifting regulatory sentiment under the Trump administration and Ripple’s legal progress. Since Donald Trump’s victory in the U.S. presidential election, XRP has surged by an impressive 370%, spurred by investor expectations for a more crypto-friendly regulatory environment.

Market sentiment has further improved following the appointment of key pro-crypto figures, including Paul Atkins as the new SEC Chair. Atkins’ nomination has raised hopes for a resolution to the long-running SEC lawsuit against Ripple, a development that could remove significant barriers to XRP’s broader adoption.

Market Reaction and Broader Trends

XRP’s price movement mirrors the broader upward trend seen across major cryptocurrencies. Ethereum (ETH) rose above $4,000, registering a modest 2% daily gain. Solana (SOL), Cardano (ADA), and Avalanche (AVAX) also posted small increases, maintaining their bullish momentum.

In contrast, Toncoin (TON) and Chainlink (LINK) slipped by 4% each, reflecting minor profit-taking across select altcoins.

The total cryptocurrency market capitalization has gained $90 billion in the past 24 hours, now nearing $3.95 trillion, its highest level in years.

Outlook: Eyes on XRP’s $3 Target

With the RLUSD launch and improving regulatory conditions, XRP has entered a critical phase. Investors are now eyeing its previous all-time high of $3.40, recorded in January 2018.

Analysts note that XRP must maintain its current momentum and surpass resistance at $2.80 to pave the way for further gains. A potential breakthrough above $3 would mark a significant milestone in XRP’s recovery and Ripple’s broader ecosystem expansion.

The coming days will be pivotal as the RLUSD stablecoin launches and investor focus intensifies on XRP’s ability to sustain its rally. For now, XRP’s sharp surge positions it firmly as a dominant player in the cryptocurrency market, signaling renewed confidence in Ripple’s long-term strategy.