XRP Market Cap Surpasses USDT to Rank Third as CEO Eyes ETF Approval and Strategic Adoption

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The XRP ecosystem is undergoing a transformative phase, marked by shifting market dynamics, growing institutional interest, and evolving regulatory clarity. Recently, XRP surpassed Tether (USDT) in market capitalization, securing its position as the third-largest cryptocurrency—trailing only Bitcoin (BTC) and Ethereum (ETH). This milestone comes amid renewed optimism surrounding a potential XRP spot ETF approval and strategic adoption by institutional and governmental entities.

Backed by Ripple Labs, XRP has weathered years of legal uncertainty with the U.S. Securities and Exchange Commission (SEC). Despite a 20% price correction over the past two months, bullish sentiment remains strong among large investors—commonly referred to as "whales." According to blockchain analytics firm Santiment, wallets holding at least 1 million XRP increased their aggregate holdings by 6.5% during this period, accumulating a total of 46.4 billion XRP. At current valuations, this represents approximately $11.4 billion in whale-held assets.

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Rising Network Activity Signals Growing Ecosystem Engagement

Beyond wallet accumulation, on-chain activity has surged dramatically. March saw a sixfold increase in active XRP wallets compared to previous months—an indicator of heightened user engagement and transactional usage. This uptick aligns with growing expectations that Ripple’s long-standing legal battle with the SEC is nearing resolution.

Market participants believe a favorable regulatory outcome could pave the way for broader financial integration of XRP, including approval of a spot ETF in the United States. With Bitcoin and Ethereum already hosting approved spot ETFs, momentum is building for XRP to join the ranks of regulated digital asset products.

Ripple CEO: XRP ETF Likely by Late 2025, Strategic Reserve Inclusion Possible

Brad Garlinghouse, CEO of Ripple, recently shared optimistic insights during an interview with Bloomberg Markets. He expressed confidence that an XRP spot ETF could be approved by the end of 2025, citing increasing institutional demand and global precedent.

“I’m optimistic that we’ll see an XRP ETF approved before the close of 2025,” said Garlinghouse. “There’s real momentum building.”

He also highlighted the possibility of XRP being included in a U.S. strategic digital asset reserve—a concept gaining traction following executive actions earlier in the year. Referencing statements from Truth Social's president, Garlinghouse noted discussions around establishing a national crypto reserve that may include not only Bitcoin but also XRP.

This potential inclusion underscores a broader shift in how digital assets are perceived—from speculative instruments to strategic financial tools. While no official policy has been enacted, the mere suggestion elevates XRP’s profile within policy and investment circles.

When asked about Ripple Labs’ own public listing prospects, Garlinghouse acknowledged that an IPO remains a possibility but is not currently a top priority.

“An IPO is on the table, but our focus right now is on product development, global expansion, and regulatory clarity.”

ETF Filing Surge: Over 10 Applications Submitted to SEC

The path toward an XRP spot ETF appears to be gaining institutional traction. More than ten financial firms—including industry heavyweights like Bitwise and Franklin Templeton—have filed applications with the SEC to launch XRP-based exchange-traded products.

Garlinghouse pointed to the success of XRP ETPs (exchange-traded products) outside the U.S., particularly in Europe and Canada, as proof of concept. These products have demonstrated steady inflows and investor trust, reinforcing the argument for similar offerings in American markets.

“We’ve seen strong adoption of XRP ETPs internationally. The demand is real. I’m confident we’ll see ETF approval soon.”

However, challenges remain. Unlike Bitcoin and Ethereum—which the SEC has classified as commodities—XRP’s classification remains contested due to its corporate origins and distribution model. Regulators may still view it through a securities lens, creating uncertainty around approval timelines.

Despite these hurdles, sentiment is shifting. The SEC’s recent decision to drop its appeal in the Ripple case signaled a de-escalation in enforcement posture, opening doors for clearer regulatory pathways.

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XRP Overtakes USDT: A Milestone in Market Evolution

In a significant market development, XRP’s market capitalization has officially surpassed that of Tether (USDT), marking a historic shift in the crypto hierarchy. Over the past 24 hours, XRP surged 11%, breaking above $2.51 and outpacing stablecoin dominance in total valuation.

While USDT remains the most widely used stablecoin for trading and liquidity provision, its market cap reflects pegged value rather than speculative or investment-driven price appreciation. In contrast, XRP’s rise signals growing investor confidence in its utility, regulatory trajectory, and long-term potential.

This repositioning highlights a maturing ecosystem where utility-focused blockchains are regaining investor attention after periods dominated by meme coins and speculative assets.

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Frequently Asked Questions (FAQ)

Q: Why did XRP surpass USDT in market cap?
A: While USDT maintains a stable $1 value, XRP’s price surge—driven by ETF speculation, whale accumulation, and regulatory progress—pushed its total market value above USDT’s. This reflects growing investor confidence in XRP’s future utility and adoption.

Q: Is an XRP ETF likely to be approved in 2025?
A: Ripple CEO Brad Garlinghouse has expressed optimism about a late-2025 approval. With over 10 applications filed and international ETPs proving successful, chances are improving—though SEC classification concerns remain a key hurdle.

Q: What role could XRP play in a U.S. digital asset reserve?
A: Though not confirmed, discussions suggest XRP could be considered for inclusion in a strategic reserve due to its fast settlement times and low transaction costs—features valuable for cross-border payments and financial infrastructure.

Q: Are large investors still buying XRP despite price volatility?
A: Yes. Data from Santiment shows that wallets holding 1 million+ XRP increased their holdings by 6.5% recently, accumulating 46.4 billion tokens—worth over $11 billion—indicating strong institutional conviction.

Q: Could Ripple go public in the near future?
A: An IPO is possible but not imminent. Brad Garlinghouse stated it’s “on the table,” but current priorities include regulatory clarity, product development, and global expansion.

Q: How does Ripple’s legal win impact XRP’s future?
A: The SEC dropping its appeal removes major legal overhangs, improving XRP’s regulatory standing. This increases the likelihood of institutional adoption, exchange listings, and financial product approvals like ETFs.

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Conclusion: A New Chapter for XRP

XRP’s ascent to third place in market capitalization is more than just a numerical shift—it symbolizes renewed credibility and momentum for a digital asset once mired in legal controversy. With whale accumulation intensifying, network activity rising, and ETF prospects brightening, XRP is positioning itself as a cornerstone of the next-generation financial infrastructure.

While regulatory risks haven’t disappeared entirely, the overall trajectory points toward greater acceptance—both in markets and policymaking circles. Whether through ETF approvals, strategic reserves, or global payment integration, XRP is demonstrating resilience and relevance in an increasingly competitive landscape.

As investors watch for the next catalyst—be it formal ETF clearance or macro-level digital asset policies—the foundation for sustained growth appears stronger than ever.