Last month was a month filled with significant developments for the cryptocurrency market.
The most significant of these was undoubtedly the passage of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), which regulates stablecoins.
The GENIUS law, which went through the necessary stages, finally came before US President Donald Trump and was signed into law by Trump.
While the approval of the GENIUS law is welcomed, it is stated that the stablecoin market will experience incredible growth and reach trillions of dollars.
At this point, South Korean investment bank iM Securities said that they expect stablecoins to threaten XRP’s number 3 position in the future.
iM Securities analysts said in a recent report that the stablecoin market, currently valued at around $270 billion, will grow rapidly, increasing competition in the cryptocurrency sector.
Analysts noted that with the start of the crypto-friendly Trump 2.0 administration, the stablecoin market has rapidly reached nearly $270 billion.
Analysts have warned that this growth in stablecoins poses a threat to XRP.
At this point, it was stated that stablecoins will experience a rapid rise with factors such as increasing growth and usage, and XRP could threaten its status as the third-largest cryptocurrency.
While stablecoins are pegged 1:1 to fiat currencies, limiting the risk of price volatility, cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP are subject to fluctuations driven by market supply and demand, making them less suitable for international money transfers.
At this point, given the growing market around stablecoins and other positive factors, stablecoins are expected to threaten XRP’s status as the third-largest currency.
*This is not investment advice.