Tether (UDST), the world’s largest stable coin by market capitalization, has once again outperformed the large altcoin XRP.
On September 1, Tether outperformed XRP as the third largest cryptocurrency by market capitalization.and becomes the second largest altcoin after ether (ETH).
At the time of this writing USDT’s market cap is more than $ 13.4 billion, according to the cryptanalysis website Coin360. XRP is now the fourth largest coin by market capitalization at $ 13 billion.
The latest move in the rankings isn’t new for the 2020 crypto market. Tether surpassed XRP as the third largest cryptocurrency in May 2020.
Both cryptocurrencies have since increased their market capital significantly. As reported, Tether previously outperformed XRP with a market cap of approximately $ 8.8 billion, while XRP’s market cap at that point was $ 8.6 billion.
The XRP crash comes shortly after a Ripple manager claimed that XRP does not compete with stablecoins. On August 19, Emi Yoshikawa, Senior Director of Global Operations at Ripple, argued that XRP does not compete with stablecoins or with the central bank (CBDC) digital currencies.
According to Yoshikawa XRP complements global progress in the development of stablecoins and CBDC. “We believe that various stablecoins and CBDC will create synergies by responding to the liquidity problem and building a bridge between independent crypto assets and XRP,” said the managing director.
The new milestones in Tether’s market capitalization this year lie amid massive stable coin growth. Both Tether and USD Coin (USDC) have reached important milestones lately. USDC passed the $ 1 billion mark in July 2020.
In contrast to highly volatile crypto assets like Bitcoin (BTC) Stable currencies like the USDT are designed to provide a digital representation of fiat currencies like the USD and ensure a “stable” price. Fixed one-to-one in USD, the price of Tether is always one US dollar.
As a “stable” cryptocurrency, Tether is the largest cryptocurrency in terms of daily transaction volume. As of press time, Tether’s daily transaction volume exceeds $ 10 billion and is above Bitcoin’s at $ 9.5 billion, according to Coin360. As reported Tether is larger than the giant payment processor PayPal in terms of average daily transfer volume.
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