Ripple‘s native token XRP/USD has skyrocketed 20% over the last 24 hours, trading at $2.43, significantly outpacing Bitcoin's BTC/USD 5% rise to $100,500.
The rally comes after Ripple Labs secured approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin on Tuesday, marking a pivotal step in Ripple's expansion into the burgeoning stablecoin market.
What Happened: Ripple's RLUSD, pegged to the U.S. dollar, has been heralded as a game-changer for the company, with CEO Brad Garlinghouse confirming the approval on X (formerly Twitter).
"When RLUSD is live, you'll hear it from Ripple first," he said, indicating that exchange and partner listings for the stablecoin are imminent.
The NYDFS approval ensures RLUSD complies with stringent regulatory standards, enabling Ripple to operate within New York's robust financial ecosystem.
The stablecoin has already undergone testing on the XRP Ledger and Ethereum blockchain, setting the stage for its launch.
The approval is not just a victory for Ripple but a catalyst for optimism in the cryptocurrency market, with XRP's performance outshining other major altcoins.
Ethereum ETH/USD gained 6%, trading at $3,798, while Solana SOL/USD and Dogecoin DOGE/USD climbed 9% and 8% respectively.
Shiba Inu SHIB/USD also surged 15%, reflecting broader market enthusiasm.
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Why It Matters: The bullish sentiment surrounding XRP has reignited debates within the crypto community.
Popular trader DonAlt tweeted, "I’ve got this weird feeling that IF the bull market continues for a couple more months, XRP is gonna dominate the discourse."
He attributed XRP's potential dominance to its centralized structure, allowing it to move quickly in the evolving regulatory and market landscape.
DonAlt also commented on the shift in the crypto community's attitude toward centralization, stating, "Nowadays no one gives a [care] about how centralized a chain is as long as it’s fast."
His remarks highlight a broader trend of pragmatism among investors who prioritize functionality over ideological purity.
Ripple's RLUSD stablecoin aims to capitalize on the projected $2 trillion stablecoin market by 2028, positioning itself as a key player in the sector.
The stablecoin forms part of Ripple's broader strategy to enhance its ecosystem and provide liquidity for decentralized finance (DeFi) applications.
The NYDFS approval is seen as a major endorsement, paving the way for Ripple to integrate RLUSD into its existing infrastructure and attract institutional adoption.
Analysts view the stablecoin as a critical component in boosting XRP's utility and cementing Ripple's role in the evolving crypto landscape.
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