XRP Overtakes Tether as the Third-Largest Cryptocurrency While Bitcoin Struggles to Approach $100K

The cryptocurrency market has witnessed a dramatic shake-up, with XRP soaring past Tether’s USDT to become the third-largest cryptocurrency by market capitalization. Meanwhile, Bitcoin (BTC) faces significant resistance as it approaches the $100,000 mark.

XRP’s Meteoric Rise

XRP, the payments-oriented cryptocurrency, has skyrocketed by an astounding 375% over the past 30 days, with a 24-hour surge of over 20% to reach $2.40. This explosive growth has pushed XRP’s market capitalization to $139 billion, dethroning Tether (USDT) as the third-largest digital asset.

XRP’s surge reflects heightened market interest, with global trading volumes spiking across major platforms. For example, South Korea’s largest exchange, Upbit, reported a record $4 billion in XRP/KRW trading volume in just 24 hours, making up 27% of the platform’s total activity.

Market sentiment suggests the rally may be fueled by:

1. Speculation of Ripple-issued stablecoins potentially being approved.
2. Rumors of an upcoming XRP-based ETF.
3. Widespread social media buzz, particularly on TikTok, which has rejuvenated retail investor enthusiasm for XRP.

Further boosting sentiment, South Korea recently delayed its crypto capital gains tax implementation to 2025, a move that removes a significant barrier to speculative trading, particularly for tokens like XRP.

Bitcoin Battles the $100K Resistance

Bitcoin, although still strong, faces a critical psychological and technical barrier near the $100,000 mark. After briefly touching $97,000, BTC retreated to $96,000, marking a 1% dip over the past 24 hours.

Key hurdles for Bitcoin include a massive sell wall worth $384 million situated near the $100K level, representing over 4,000 BTC in sell orders. This has created persistent resistance, preventing BTC from advancing further.

Declining Bitcoin Dominance

As Bitcoin struggles to break higher, its market dominance has slid from 61.5% to 56.5% since late November. Investors are increasingly rotating capital into altcoins like XRP, Ethereum (ETH), and other DeFi tokens. This trend signals a shift in market focus as traders look for potentially higher returns in altcoin markets.

The Altcoin Effect

The broader market rally extends beyond XRP, with DeFi tokens and altcoins also gaining momentum:

• Ethereum (ETH): Up over 7% in the past day, driven by increased on-chain activity and futures market interest.
• AAVE and UNI: Both saw 9% gains, reflecting renewed interest in decentralized finance.
• Memecoins PEPE and MOG: These high-beta tokens surged more than 8% alongside broader market trends.

Read more: What Are Altcoins? A Complete Guide to Bitcoin Alternatives

What’s Next for the Crypto Market?

XRP’s resurgence and Bitcoin’s continued battle with $100,000 highlight the divergent trends within the crypto market. XRP’s rise could signal the return of retail investors and greater participation in payment-focused blockchain solutions. However, Bitcoin’s journey to six figures depends heavily on breaking the substantial sell wall and maintaining investor confidence in its dominance.

As the year ends, investors will closely watch market catalysts, such as ETF approvals, regulatory developments, and macroeconomic factors, which could determine the next phase of crypto market movements.