Analysts warn XRP is facing its largest threat ever

The passing of the GENIUS Act recently, the first extensive U.S. stablecoin law signed by President Donald Trump, is already reshaping the landscape of the cryptocurrency market. Analysts are now saying that this legislation might open the door to trillions of dollars in growth for the sector, sparking new competition among major digital assets.

iM Securities, a South Korean investment bank, has stated that the rapid ascension of stablecoins could potentially dislodge XRP from its longstanding position as the third-largest cryptocurrency by market cap. The stablecoin market has quickly expanded to almost $270 billion under the early days of Trump’s second administration, which has taken a significantly more crypto-friendly stance compared to its predecessor. iM Securities foresees this growth continuing, driven by increased adoption in payment systems, trading activities, and international remittances.

Stablecoins, unlike Bitcoin, Ethereum, or XRP, are tied directly to fiat currencies like the U.S. dollar, ensuring a stable value that avoids the typical volatility associated with other digital assets. This stability makes stablecoins appealing for cross-border transactions and daily transactions.

While XRP has traditionally been seen as a pivotal currency for payments, analysts are warning that stablecoins could soon step into that role more effectively. The swift rise and integration of stablecoins into both retail and institutional finance could erode XRP’s competitive edge in global money transfers. iM Securities mentioned that the expanding market share of stablecoins creates a fundamental challenge for XRP, projecting that stablecoins might surpass XRP’s market cap in the long run.

With the regulatory certainty provided by the GENIUS Act in the U.S., many observers believe that stablecoins are now entering a new phase that could ultimately redefine the rankings of the top cryptocurrencies in the market. Please note that the information provided in this article is for informational purposes only and should not be considered financial, investment, or trading advice. Coindoo.com does not endorse or recommend any particular investment strategy or cryptocurrency. Always conduct your own research and seek advice from a licensed financial advisor before making investment decisions.