- Tether (USDT) has leapfrogged Ripple (XRP) to become the 3rd largest digital coin by market capitalization.
- This is the first time USDT and XRP have swapped positions as a result of price fluctuations.
- The rise of USDT turns to be the good news for BTC investors as it could be a bullish signal for Bitcoin.
The controversial stablecoin Tether (USDT) has recently shot up in price and popularity despite uncertain market conditions. On May 12, the USDT was among the biggest gainers of the day. It even displaced Ripple (XRP) from the third spot.
The US dollar-backed stablecoin now holds the third position right behind Ethereum (ETH), which is the largest altcoin by market capitalization.
At the time of press, the Tether (USDT) now has a market cap of $8.7 Billion, according to data from The StableCoin Index. This is about $109 million more than XRP’s whose market capitalization is approximately $8.6 billion. The increase in market cap recorded by USDT in moments leading to BTC halving has placed it above Ripple’s native token XRP.
Is this a Bitcoin Bullish Signal?
In recent weeks, several exchanges have reported a massive inflow of USDT, in preparation of the Bitcoin halving. This is likely as a result of the constant increment in the supply of this stablecoin.
Although it is not uncommon for exchanges to hold huge amounts of USDT, ahead of a major event like the halving of BTC, this could be considered a bullish signal for Bitcoin. This is because investors are likely preparing to buy cryptocurrencies with USDT once the dust settles.
The success record by Tether USDT didn’t happen overnight. The plan has been in the works for a long time now. Tether has launched stablecoins pegged to other top traditional currencies such as the— Euro, Chinese Yuan (CNHT), as well as gold.