$XRP Returns To Top 3 As $RLUSD Trades Higher Than $USDT – Effect Of Upcoming 'Un-Tethering'?

XRP, which flipped Tether at the beginning of December to become the world's third largest cryptocurrency by market cap, has once again reclaimed the said spot, overtaking the USDT stablecoin's market value Wednesday night.

As of late Wednesday, XRP's market cap reached $138.2 billion. Stablecoin giant Tether's market cap is currently at $137.1 billion.

The flip took place as XRP prices surged above $2.40 Wednesday night, seemingly celebrating the Ripple stablecoin RLUSD's stabilization at $1. To compare, USDT was trading at around $0.998 Wednesday night, while the number two stablecoin USDC was trading at around $0.999.

XRP is up by 15% in the day amid a week-long spike of 6.5%. The XRP Ledger's native cryptocurrency was hit hard by the broader crypto market crash in mid-December, but it has since picked up from the bloodbath and increased by a stellar 270% in 2024.

What is an 'Un-Tethering'?

Over on X, crypto holders, particularly XRP holders, have been talking overnight about the token's surge and many of them mentioned an "un-Tethering."

It appears some XRP holders are referring to rising fears around the crypto space regarding the supposed delisting of USDT in the European Union, considering how the stablecoin is not yet compliant with the bloc's sweeping Markets in Crypto-Assets Regulation (MiCA).

The MiCA came into full force on Dec. 30, 2024, becoming the world's first most comprehensive crypto framework that's already under implementation.

Coinbase has already delisted USDT pairs, while other crypto exchanges have yet to confirm whether they will also delist the world's most valuable stablecoin.

In some EU member states, Tether only has around six months left before getting the USDT compliant with MiCA, but in other jurisdictions, the company has up to 12 months to adhere to the bloc's crypto business guidelines.

Crypto users may be linking discussions about exchange delistings for USDT to RLUSD's stabilization and the XRP coin's subsequent surge after New Year's Day.

Ripple is overseeing the development of the XRP Ledger, and Ripple is also the world's largest holder of the XRP token, which is why crypto users believe RLUSD's broader adoption will only have a positive impact on XRP prices.

$RLUSD's Milestones

Since launching in mid-December, RLUSD gained the attention of stablecoin users, given its regulated status under the New York State Department of Financial Services (NYDFS).

Tether has repeatedly claimed that USDT is regulated, but it has also been accused of dodging audit requirements and running on an allegedly corrupt business model. There have also been allegations around the company not having the reserves necessary to back every USDT out there.

USDT is a long-time staple across many crypto exchanges, and while RLUSD is a newbie in the game, it has slowly made waves that has apparently had a ripple effect on XRP.

For instance, RLUSD has been included in the Uphold crypto platform's Rewards program wherein RLUSD holders can earn 5% in rewards.

Also, RLUSD is available on the MoonPay cross-border crypto payments platform, and MoonPay is a MiCA-compliant firm.

It remains to be seen whether RLUSD can hit the world's expectations of what could be a game-changer in Tether's years-long dominance in the stablecoin realm.