The recent surge in Bitcoin’s price has sparked fresh debate about what’s driving these rallies and how they compare to XRP’s steady climb. While Bitcoin smashed past $118,000 during its latest push to new all-time highs, XRP holders argue that their token’s pump looks far more natural, with fewer suspicious factors in play.
Bitcoin Hits New Highs as Tether Mints Another $1 Billion
Bitcoin’s breakout has captured headlines again, climbing above $118,000 in an ongoing market-wide rally. However, the timing has raised eyebrows after Tether minted an additional $1 billion worth of USDT. On-chain tracker Whale Alert flagged this mint, noting it came only seven days after Tether’s previous $1 billion issuance on July 3.
Shortly after the alert, Tether’s CEO Paolo Ardoino stepped in to clarify. He explained that the mint was simply a move to replenish inventory on the Tron network, adding that these new tokens haven’t entered circulation yet. They will only be used when needed for new issuance or chain swaps. Despite this explanation, critics remain skeptical about Tether’s role in Bitcoin’s dramatic moves.
XRP Community Claims Its Rally is Cleaner
This renewed skepticism has given the XRP community an opportunity to draw a clear distinction. Many XRP supporters argue that while Bitcoin’s uptrend may benefit from fresh liquidity through USDT mints, XRP’s recent gains appear to come from genuine market demand.
For example, XRP trading activity has soared on Upbit, South Korea’s largest crypto exchange. Market watchers recently highlighted a spike in volume and netflows there. Although this didn’t immediately spark a price jump, the increased demand now seems to support XRP’s ongoing rally.
XRP Outperforms Bitcoin Over 7 Days
Over the last week, Bitcoin has gained about 8.26%. Meanwhile, XRP has jumped by an impressive 17.98% in the same timeframe. Since the start of the month, XRP’s price has climbed 14.05% compared to Bitcoin’s 7.38% rise. Although XRP has yet to set a new record high, its growth appears steady and, according to supporters, less reliant on sudden injections of external capital.
The Longstanding Debate Over Tether’s Influence
Concerns over Tether’s influence on Bitcoin aren’t new. Back in May, Tether minted $2 billion in USDT, and Bitcoin’s price quickly reached a record $111,000 the very next day. Analysts at Blockchain Research Lab have also found that Bitcoin often climbs between 0.4% and 0.8% within 30 minutes of large Tether mints, especially when on-chain alerts spread quickly on social media and trigger FOMO buying.
Additionally, a well-known 2018 study by two US professors revealed that Tether often minted new USDT after Bitcoin market drops. The researchers noted that these tokens frequently flowed into Bitcoin, adding buying pressure and lifting prices.
Some market observers believe these mints simply inject much-needed liquidity. Once USDT enters exchanges, traders can spend it on Bitcoin or other digital assets, driving prices up. In that sense, Tether’s liquidity could be helping XRP too. After all, XRP rose 8% in the past 24 hours alone, benefiting from the wider market rally.
Other Top Cryptos Join the Run
XRP isn’t the only asset riding Bitcoin’s coattails. Ethereum surged by 8.24% in the last day, while Solana and Dogecoin jumped 4.5% and 10.5%, respectively. Cardano outpaced the entire group with a 15% increase, while BNB lagged behind, gaining just 2.84% during the same period.
Even so, the debate remains alive. Some critics still question Tether’s claims of fully backing every USDT with real-world reserves. They argue that if Tether mints new tokens without true backing, it could unfairly inflate Bitcoin’s price and create risks for the broader crypto market.
