Stablecoin Surge Threatens XRP’s Market Position
A recent report from iM Securities cited by Money Today warns that the booming stablecoin market—now valued at around $270 billion—could displace XRP as the third-largest cryptocurrency by market cap. Analysts attribute this growth to a potential crypto-friendly Trump 2.0 administration, which may bring clearer regulations and boost adoption. Stablecoins maintain a 1:1 peg with fiat currencies, eliminating volatility risk and making them ideal for international remittances and daily transactions. In contrast, XRP’s role as a bridge currency for cross-border payments exposes users to value swings during transfers. This growing preference for price stability challenges XRP’s core use case and may erode demand over time. Traders and investors should monitor how XRP adapts its strategy—possibly by highlighting unique features or seeking new partnerships—to defend its position in an increasingly competitive market.
Bearish
The report underscores stablecoins’ rapid ascent as a threat to XRP’s primary use case in remittances. Stablecoins’ price stability reduces demand for volatile bridge currencies like XRP. Historically, major shifts in user preference—such as the DeFi transition from ETH to stablecoin-backed lending—have depressed asset prices under pressure. In the short term, traders may sell XRP in favor of stablecoins for predictable returns. Over the long term, unless XRP adapts by improving stability or expanding use cases, its market share and price momentum could weaken further.