The stablecoin Tether (USDT) has overtaken XRP to become the third-largest cryptocurrency by market capitalization, now ranking as the second-largest altcoin behind Ethereum (ETH).
USDT's Market Cap Milestone
USDT's market capitalization recently exceeded $87.9 billion**, surpassing XRP's **$86 billion. This positions USDT as:
- The third-largest cryptocurrency overall
- The second-largest altcoin after ETH
The growth stems from USDT's increasing supply, primarily circulating on the Ethereum blockchain. Notably, significant inflows of USDT into exchanges occurred ahead of the Bitcoin halving, signaling potential bullish momentum for BTC.
Why USDT's Growth Matters
- Investor Activity: Large USDT holdings on exchanges often precede BTC purchases.
- Market Indicator: Exchange-held USDT ratios can predict BTC price movements hours or days in advance (source).
"Monitoring USDT on exchanges allows traders to anticipate sudden BTC volatility."
— Brian Quinlivan, Santiment
USDT Dominates the Stablecoin Market
USDT's liquidity and adoption outpace competitors:
- Market Share: Commands ~90% of BTC/stablecoin trading volume.
- Multi-Currency Pegs: Offers USD-, EUR-, CNY- (CNHT), and gold-backed variants.
Competitor Comparison
| Stablecoin | Market Cap (April) | BTC Trading Volume (April) |
|------------|--------------------|---------------------------|
| USDC | $776.4M | -39% vs March |
| PAX | N/A | +27% vs March |
👉 Explore real-time stablecoin data
April Trading Trends
- Overall Slowdown: BTC/USDT volume dropped 16% month-over-month.
- Stablecoin Resilience: PAX volume grew 27%, outperforming fiat pairs like EUR/KRW.
Key Takeaways
- Negative Correlation: Higher exchange-held USDT often precedes BTC price dips.
- Utility: Stablecoins remain vital for non-crypto users, underscoring their market staying power.
FAQs
Q: Why did USDT surpass XRP?
A: Increased supply and pre-halving exchange inflows boosted its market cap.
Q: How does USDT impact BTC prices?
A: Rising exchange-held USDT often signals impending BTC buy pressure.
Q: Which stablecoin is growing fastest?
A: PAX saw 27% volume growth in April, though USDT dominates overall.
For deeper insights, check our 👉 stakeholder analysis.