XRP reclaims 3rd place, overtakes Tether: Should you expect a rally now?

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XRP reclaims 3rd place, overtakes Tether: Should you expect a rally now？

Ripple [XRP] has reclaimed the third spot by market cap, overtaking Tether [USDT] in a move that shows renewed investor confidence.

The rally marks a major milestone in the tokens road to recovery, with on-chain data adding weight to the momentum.

While whale activity appears to be cooling, a wave of long-dormant wallet reactivations points to deeper shifts – suggesting this breakout may be more than a short-term spike.

XRP reclaims #3 market cap spot

XRP has officially surpassed Tether to become the third-largest cryptocurrency by market cap, a position it hasnt held since early 2021.

Trading at $2.49 – briefly touching $2.60 – XRPs resurgence appears to be supported by more than just market sentiment.

Source: CoinMarketCap

A proposed Missouri bill (House Bill 594) could make the state the first in the U.S. to allow full income tax deductions on capital gains from digital assets, including XRP.

The number of XRP holders has also grown by over 11% in 2025, while increased real-world utility – like its new listing as a payment method on Travala – further boosts its narrative.

Signs of stabilization

The 30-day Moving Average of whale activity is now curling upward.

Source: Cryptoquant

Why the slowdown matters

What to watch for？

A flip of the 30DMA to green would mark the first net whale inflows since late 2024 – a major shift in sentiment.

Reactivation of long-dormant whale wallets would further confirm renewed interest from large holders.

On the technical side, a sustained breakout above $2.60 with strong volume is crucial. Finally, improving liquidity and deeper order books would validate demand.