Analysts Say XRP Faces Its Biggest Threat Yet

Analysts believe the legislation could unlock trillions of dollars in growth for the sector, creating new competition among top digital assets.

According to South Korean investment bank iM Securities, the rapid rise of stablecoins could eventually push XRP out of its long-held position as the third-largest cryptocurrency by market value.

Stablecoin Market Accelerates Under Trump Administration

In a recent report, iM Securities noted that the stablecoin market has already swelled to nearly $270 billion under the early months of Trump’s second administration, which has adopted a far more crypto-friendly approach than its predecessor. The firm projects this momentum will continue, fueled by broader adoption in payments, trading, and international money transfers.

Unlike Bitcoin, Ethereum, or XRP, stablecoins are pegged directly to fiat currencies such as the U.S. dollar, providing a predictable value that avoids the volatility common to other digital assets. This stability has made them increasingly attractive for cross-border transactions and everyday usage.

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XRP’s Position Under Pressure

While XRP has long been viewed as a bridge currency for payments, analysts caution that stablecoins could soon occupy that role more efficiently. Their rapid expansion and integration into both retail and institutional finance may undermine XRP’s competitive advantage in global transfers.

“The growing market share of stablecoins represents a structural challenge for XRP,” iM Securities said, adding that long-term adoption trends could see stablecoins surpass XRP’s market capitalization.

With the GENIUS Act now providing regulatory certainty in the U.S., many believe stablecoins are entering a new era — one that could eventually redefine the crypto market’s rankings at the top.

The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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