Tether (UDST), the world’s largest stable currency by market value, has once again surpassed the mainstream cryptocurrency XRP.
On September 1, Tether overtook XRP, the third-largest cryptocurrency by market value, to become the second largest digital currency after Ether (ETH).
According to the crypto analysis website Coin360, the market value of USDT is over $ 13.4 billion at the time of publication. XRP is now the fourth largest coin after its market value of $ 13 billion.
The recent change in rating is nothing new to the cryptocurrency market in 2020. In May 2020, Tether overtook XRP as the third-largest cryptocurrency.
Since then, both cryptocurrencies have greatly increased their market value. Tether was previously reported to outperform XRP with a market value of around $ 8.8 billion, while XRP’s market cap was $ 8.6 billion at the time.
The drop in XRP came shortly after a Ripple CEO stated that XRP is not competing with the stablecoin. On August 19, Amy Yoshikawa, Ripple’s chief global operations manager, said that XRP does not compete with stacked coins or central bank digital currencies (CBDCs).
Yoshikawa said that XRP complements the global progress in developing stablecoins and central bank digital currencies. “We believe that the various stablecoins and cryptocurrencies will create synergy by solving the liquidity problem by combining the standalone cryptocurrency, XRP,” the leader said.
Tether’s new market value milestones come amid the explosive growth of the coin group this year. Tether and USD Coin (USDC) both recently achieved major milestones, with USDC surpassing $ 1 billion in July 2020.
Unlike highly volatile cryptocurrencies like Bitcoin (BTC), stacked coins like USDT are designed to provide a digital representation of fiat currencies like the US dollar and provide a “stable” price. The Tether price is pegged to 1 US dollar and is always equivalent to 1 US dollar.
Tether gives the “stable” cryptocurrency the largest cryptocurrency in terms of daily transaction volume. According to Coin360, Tether’s daily trading volume is over $ 10 billion at time of publication, which is more than $ 9.5 billion of Bitcoin. Weather is also said to be larger than the mainstream payment processor PayPal in terms of average daily conversion volume.