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Tether (UDST), the largest stablecoin in the world by market capitalization, has again outperformed the major XRP altcoins.
On September 1, Tether overtook XRP as the third largest cryptocurrency by market cap, becoming the second largest altcoin after Ether (ETH).
As of press time, the USDT’s market cap totals more than $ 13.4 billion, according to data from crypto analytics site Coin360. XRP is now the fourth largest coin by market cap with $ 13 billion.
The latest movement in the ranking is not new to the cryptocurrency market in 2020. Tether overtook XRP as the third largest cryptocurrency in May 2020.
Since then, both cryptocurrencies have significantly increased their market capitalization. As reported, Tether had previously surpassed XRP with a market cap of around $ 8.8 billion, while XRP’s market cap at the time represented $ 8.6 billion.
XRP’s decline comes shortly after a senior Ripple executive said XRP is not competing with stablecoins. On Aug.19, Emi Yoshikawa, Ripple’s senior director of global operations, said that XRP does not compete with either stablecoins or central bank digital currencies (CBDCs).
According to Yoshikawa, XRP is complementary to global progress in stablecoin and CBDC development. “We believe various stablecoins and CBDCs will create synergy by addressing the liquidity problem by linking the independent crypto assets, XRP,” the executive said.
The new milestones of Tether’s market capitalization come during the massive growth of stablecoins this year. Both Tether and USD Coin (USDC) hit major milestones recently, with USDC surpassing $ 1 billion in July 2020.
Unlike highly volatile crypto assets like Bitcoin (BTC), stablecoins like USDT are designed to provide a digital representation of fiat currencies like USD and ensure a “stable” price. Fixed at the one-to-one US dollar, Tether’s price is always equivalent to one US dollar.
By providing a “stable” cryptocurrency, Tether is the largest cryptocurrency in terms of daily transaction volume. As of press time, Tether’s daily trading volume totals over $ 10 billion, surpassing Bitcoin’s $ 9.5 billion, according to data from Coin360. As reported, Tether is also larger than the leading PayPal payment processor in terms of average daily transfer volume.
