- After turning around its market capitalization, XRP has now gained the recognition that USDC once had.
- New addresses contain more USDC than XRP.
Ripple [XRP] has replaced Circle [USDC] as the fifth member of the coveted Hong Kong Virtual Asset Consortium (HKVAC) global large equal weight index which was issued on October 13. The HKVAC is designed to reflect the extensive spectrum of investable digital assets.
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The organization does this by assessing regulatory, risk and trust benchmarks for assets before creating a top five.
XRP takes over, USDC falls
Previously, USDC was ranked next to the top five Bitcoin [BTC], Ethereum [ETH] Binance coin [BNB]And Tether [USDT]. however, the wins of XRP and some of the losses Circle suffered earlier this year contributed to the replacement.
Since HKVAC considers regulation and performance as a criterion, it can be concluded that Ripple’s partial victory over the US SEC helped XRP get on the list. Also notable was the fact that the token is up 41.50% on a Year-To-Date (YTD) basis.
While USDC has maintained its peg to the US dollar, the stablecoin’s link to the challenges faced by some traditional institutions has had a major impact on the currency. In March, Circle revealed that $3.3 billion of its reserves were held by the troubled Silicon Valley Bank (SVB).
As a result of the announcement, the USDC briefly fell to $0.86, but was able to regain the dollar peg shortly afterwards. However, one area that USDC has failed to revive is its market capitalization. In addition to increasingly losing stablecoin dominance to USDT, XRP has also reversed USDC’s market cap.
At the time of writing, XRPs Market capitalization was $25.94 billion, while USDC’s was lower at $25.12 billion. This data confirms that there has been more XRP in circulation than USDC for some time now.
Source: Santiment
Stablecoins rule here
According to Network Growth, both USDC and XRP have seen declines recently. According to Santiment, XRPs Network growth was 286 at the time of writing. USDCs, on the other hand, were much higher at 2278.
Network growth measures the number of new addresses interacting with a network. When the measure increases, it means that there have been many transactions involving new entrants. When network growth decreases, it implies a decrease in traction.
Source: Santiment
Realistic or not, here it is The market cap of USDC in XRP terms
So USDC’s network growth outperforming XRP is not necessarily evidence that the Circle network outperformed. Instead, it could be a sign that market participants are leaning towards holding stablecoins as many appear to be preparing for a bull cycle.
Meanwhile, other cryptocurrencies were included in HKVAC’s top 30 index. After internet computer [ICP] went off the list, MakerDAO [MKR]and Quant [QNT] joined the battle.