XRP surpasses USDT to become the third largest Crypto Asset by market capitalization! However, 95% of the Circulating Supply is in the profit zone, with $3 being the critical line for bulls and bears.

XRP's market capitalization once again surpassed USDT to become the third largest currency, but analysts believe that 95% of the on-chain chips are in the profit zone, which poses potential pressure, with the market caught in a range-bound struggle between euphoria and profit-taking. (Background: Ripple ( Ripple )'s years-long legal battle has ended, but XRP remains trapped in a low-yield value dilemma.) (Additional background: Ripple's "XRPL EVM sidechains" mainnet has officially launched, allowing XRP to pay for gas fees. What are its features?) According to CMC data, Ripple's XRP has once again surpassed the leading stablecoin USDT after more than three months, with a market cap reaching 163.4 billion USD, positioning it as the third largest crypto asset globally, with a nearly 25% increase over the past week. On-chain data signals red: capital movement and whale activity. However, behind this excitement, analytics firm Santiment pointed out that over 95% of circulating XRP is currently in the profit zone, and historical experience shows that this is often a high-risk area for profit-taking. Meanwhile, from the end of June to early July, whales holding over 10 million coins have sold 120 million coins, and yesterday saw another 140 million XRP flow into exchanges, indicating a possibility of continued short-term selling pressure. Image source: Santiment. Market cap milestone: a straight climb after the lawsuit concluded. At the beginning of 2024, XRP's market cap was only 30 billion USD, but with the settlement of the SEC lawsuit and the regulatory gloom dissipating, institutional funds gradually entered the market, leading to a nearly 6-fold increase in market cap within a year and a half. However, we know that fundamentals are the long-term engine. Ripple is currently applying for a national bank license in the US and an XRP spot ETF. HSBC's digital asset research head estimates that if the ETF is approved, it could bring in 30 billion USD of new funds. The crypto-friendly stance of the Trump administration also favors Ripple's future development. Ripple's CEO stated: "Our goal is to have 30% of cross-border payments running on the XRP Ledger by the end of 2025." However, aside from institutional use, XRP's actual application and economic benefits in the consumer market remain limited. According to Messari's data, its flagship decentralized exchange (DEX) typically has a daily trading volume of less than 100,000 USD, which poses a significant challenge to its future development. Overall, whether XRP can hold above 2.65 USD in the short term is the minimum threshold for bulls; if it can hold above 3 USD, it will mark the opening of a new chapter. However, investors are still reminded to control their positions and set profit-taking and stop-loss limits, as this is the only ironclad rule in facing this tug-of-war between bulls and bears. Related reports: The first "2x XRP leverage" fund in the US was launched, analysts say: Ripple's spot ETF approval is just a matter of time. Ripple ( Ripple )'s years-long legal battle has ended, but XRP remains trapped in a low-yield value dilemma. XRP's market cap surpasses USDT to become the third largest token. Ripple's CEO is optimistic about the XRP ETF launch by the end of this year, and an IPO cannot be ruled out. "XRP overtakes USDT to become the third largest cryptocurrency by market cap! But 95% of circulating supply is in the profit zone, with $3 being the life and death line for bulls and bears." This article was first published by BlockTempo, the most influential blockchain news media.