XRP Price Prediction as USD Coin Overtakes XRP in Market Capitalization – What Happens Next?
The total market cap of USD Coin (USDC), the world’s second-largest US dollar-pegged stablecoin by market capitalization which is issued by US fintech firm Circle, overtook XRP (XRP) in market cap on Thursday.
XRP is the cryptocurrency that powers the XRP Ledger, a decentralized layer-1 blockchain protocol launched by payments-focused US fintech firm Ripple more than 10 years ago.
USDC’s market cap was last around $26.15 billion, making it the fifth largest crypto by market cap, while XRP’s was around $25.95 billion making it the sixth.
USD Coin’s dominance over XRP comes after XRP tumbled in price earlier this week amid broad downside in the crypto market amid jitters about potential digital asset sales from failed and bankrupt crypto exchange FTX.
While other sections of the market have now recovered (Bitcoin (BTC) is currently at monthly highs in the $26,600s), XRP is still struggling a little in the mid-$0.48s.
Indeed, XRP has been stuck in a downtrend since an abrupt spike to multi-year highs in the $0.90s after Ripple secured a partial victory over the SEC in their ongoing lawsuit regarding Ripple’s alleged sales of $1.3 billion worth of XRP tokens, which the SEC views as unregistered securities.
This downtrend has seen USDC leapfrog XRP’s market cap, even though USDC’s market cap has also been in a downtrend since reaching a record high in June 2022 around $56 billion.
The decline in USDC’s market cap accelerated in March after a mini US banking crisis triggered fears the stablecoin may be under-collaterized – USDC is backed 1:1 with actual US dollars or liquid equivalents, the former of which are stored in various US bank accounts.
While XRP has been able to recover about 6% from its earlier weekly lows in the $0.46
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