Ripple Labs has been undertaking rigorous testing of the XRP ledger. According to data provided by the Ripple Stablecoin Tracker, RLUSD Treasury minted 2,000,000 RLUSD 14 hours before this writing. With the New York Department of Financial Services (NYDFS) set to approve the RLUSD stablecoin, Ripple could be set to introduce its stablecoin to the market.
XRP captain, a prominent XRP enthusiast with over 85,000 followers on X (previous Twitter), posted about the RLUSD launch on his X page. However, Ripple Labs has not communicated about the launch.
https://twitter.com/UniverseTwenty/status/1864026770405744973
As reported by Fox Business a few days ago, sources close to Ripple highlighted that NYDFS has already communicated with Ripple, citing approval of the stablecoin. The report also highlighted that Ripple Labs is considering launching the RLUSD stablecoin on 4th December 2024.
Amid the prospect of Ripple Labs introducing the first Stablecoin on the XRP ledger, the crypto community is concerned about the implications that RLUSD might have on the price of XRP.
XRP’s Current Price Action
XRP has been on a bullish momentum recently, with the coin’s price surging over 18% on Monday and extending the gains on Tuesday. During this period, the coin reached $2.90, which is the highest price it has recorded in six years.
According to CoinMarketCap, XRP is trading slightly above $2.55 as of this writing. This indicates a 4.37% hike in the last 24 hours. If the coin continues to rally upwards, it could break the psychological resistance level set at $3.00. XRP’s RSI indicator on TradingView is at 83, which shows overbought conditions, hence a greater risk of price correction.
How the RLUSD Stablecoin Could Impact the Price of XRP?
With its launch now around the corner, RLUSD has sparked various concerns about how it might affect the price of XRP. Ripple has designed this stablecoin, built on the XRP ledger (XRPL) and Ethereum, to be used for cross-border payments, DeFi integrations, and liquidity management.
RLUSD could make Ripple’s ecosystem more attractive to institutional investors afraid of market volatility. Max Avery, an entrepreneur with over 19K followers on X, has reported on how RLUSD could impact XRP’s price.
Max highlights that more RLUSD transactions will result in higher demand for XRP, hence a possible surge in price. He also argues that as more traders and institutions adopt the Ripple Stablecoin, this could drive the utility of XRP.
The RLUSD could also support integration of DeFi on XRPL. With such integration, traders and institutions will use XRP for transactions on the dApps hence an increase in its use case and relevance. In the same thread Max declares that RLUSD could transform the XRP ledger (XRPL) just like the USDT and USDC stablecoins have transformed Ethereum and Tron.
