XRP (XRP) Has Officially Overtaken USDT (USDT) in Market Capitalization, Signalling a Notable Shift in Market Dynamics

This move could hint at a deeper rotation underway in the broader crypto ecosystem. This event not only highlights growing investor interest in altcoins but also signals a potential rotation of capital back into risk-on assets.

In a surprising shake-up among the top digital assets, Ripple’s native token, XRP, has surpassed Tether’s USDT in market capitalization. This move could be a sign of a deeper rotation underway in the broader crypto ecosystem.

While stablecoins typically occupy the top market cap positions due to their fixed value and high circulation, XRP’s recent rally has disrupted this balance. This event highlights growing interest in altcoins and signals a potential rotation of capital back into risk-on assets.

Key technical points

XRP’s rise above USDT in market cap is a pivotal moment. Historically, stablecoins like USDT or USDC have occupied high positions on the leaderboard. Their role in trading and liquidity provision keeps them in constant demand.

However, XRP’s strong price performance and accumulation has seen it push into the third position, suggesting a change in investor sentiment.

Technical analysis of the charts shows that XRP has been forming a clean series of higher lows. The price has remained above its key support zone, which is now at $2.16, and it’s bouncing into a resistance level around $2.60. This bullish structure has been unfolding with an uptick in daily volume, a key signal that traders are positioning themselves ahead of a potential breakout.

What makes this more significant is that the broader market hasn’t experienced a dramatic surge. This suggests that XRP’s rise is not just a passive lift from Bitcoin’s strength but could reflect project-specific catalysts or growing interest in large-cap altcoins like ATOM, BNB, and ADA.

With XRP now commanding more market share than USDT, the signal is clear: capital is rotating out of stablecoins and back into assets with upside potential. This shift often foreshadows broader altcoin rallies, especially when paired with falling Bitcoin dominance.

If the trend holds, XRP may not only retain its new rank but also inspire similar moves across the altcoin space.

What to expect in XRP’s market cap

If XRP maintains its current bullish structure and manages to stay above key support, then further upside is to be expected. Keep an eye out for a breakout above the $2.60 zone with volume, as this would validate a continuation toward the $3.00 zone and beyond.

The flip in market cap rankings may also serve as a psychological boost for XRP and altcoins more broadly, potentially ushering in the next phase of altseason.