In the next crypto bull run, the possibility exists for XRP to temporarily flip Tether's market cap and take back the 3rd spot it held in 2017
The epic 2017 crypto bull run was a defining moment for the blockchain industry. Driven by retail investor FOMO and speculation, prices for top cryptocurrencies like Bitcoin and Ethereum soared to unimaginable heights before crashing down in 2018's enduring bear market.
XRP, in particular, was one of the biggest beneficiaries of this hype cycle. At the start of 2017, XRP was trading at just a fraction of a penny, with a market cap of around $200 million. By the end of the year, XRP had shot up to highs of $3.50, delivering staggering returns of over 30,000% for investors who got in early enough. XRP's market cap ballooned to over $130 billion, briefly displacing Ethereum as the 2nd largest cryptocurrency.
Tether (USDT), however, was unfazed by this turbulence. As a stablecoin pegged 1:1 to the U.S. dollar, its price floated steadily around $1 throughout 2017 and 2018. However, USDT saw its market cap swell from around $10 million to nearly $2 billion by the end of 2017 as traders flocked to the relative safety of stablecoins amidst the market mania.
When the crypto winter arrived in 2018, the speculators fled, and XRP came crashing back down, declining nearly 90% within a year. But while XRP languished, USDT's dominance only grew. Its market cap passed $10 billion in 2020 as it became the reserve trading pair for most cryptocurrency exchanges.
XRPUSD is currently trading at $0.70342, showing a decline of 1.46% in the last 24 hours. The daily chart indicates a bearish sentiment, with XRP struggling to regain bullish momentum. The cryptocurrency faces resistance at $0.71379, while support Could be seen at $0.70232.
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