The launch of Ripple’s RLUSD stablecoin on Dec. 17 is yet to spark a significant rally for the price of XRP XRP/USD.
What Happened: The stablecoin received the green light from New York regulators in December and represents a significant evolution in Ripple’s ecosystem.
RLUSD is backed by a combination of cash reserves and short-term U.S. Treasury Bills, maintaining a strict 1:1 peg with the U.S. dollar and providing a stable foundation for large-scale transactions.
According to Tradingview data, XRP opened at a price of $2.4856 on Coinbase on Dec. 17.
It is currently trading around $2.405, down around 4% from the RLUSD launch day.
Why It Matters: Still, the stablecoin’s introduction is expected to enhance liquidity within the XRP ecosystem, allowing institutions to execute larger trades with reduced slippage.
RLUSD transactions will settle on both the XRPL and XRP-EVM sidechain, generating increased demand for XRP through transaction fees.
Ripple CEO Brad Gerlinghouse stated in an interview on Dec. 19 that stablecoin regulation could position Ripple’s RLUSD stablecoin as a key driver for XRP’s next rally.
The most optimistic forecasts suggest XRP could reach $4.75 in the coming months, but Chief Technology Officer David Schwartz cautioned ahead of the launch that RLUSD is “not an opportunity to get rich.”
This prediction could turn out to be a premonition.
Sideways price action notwithstanding, structural improvements to XRP’s ecosystem—particularly the reduced volatility and enhanced liquidity that RLUSD brings—may provide more sustainable support for prices than previous rallies.
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