Ripple’s XRP is making waves in the cryptocurrency market as its price surged following the announcement of a new stablecoin, RLUSD. Early Tuesday, XRPUSD rose by 7.63%, signaling strong investor enthusiasm. The launch positions Ripple as a stronger contender in the cryptocurrency space, competing with established players like Tether (USDT) and PayPal’s stablecoin offerings.
XRP Price Rises After RLUSD Launch
According to CoinDesk, XRP surged 14.6% in the last 24 hours, reaching $2.71 on Tuesday. This spike coincides with Ripple’s statement on Monday unveiling RLUSD, its new stablecoin fully backed by U.S. dollar deposits, government bonds, and cash equivalents. Ripple emphasized that RLUSD was designed to ensure stability, reliability, and liquidity — key features for investors seeking alternatives to volatile cryptocurrencies.
The stablecoin is set to debut on Tuesday, Dec. 17, on global exchanges, including:
· Uphold
· Bitso
· MoonPay
· Archax
· CoinMENA
Ripple further announced upcoming listings on platforms such as Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
RLUSD: A Game-Changer for Ripple?
Antonio Di Giacomo, an analyst at XS.com, noted that Ripple’s RLUSD positions the company in the highly competitive stablecoin market, currently dominated by Tether. He stated, “This launch places Ripple in direct competition with giants like Tether and PayPal.”
Stablecoins like RLUSD offer a less volatile alternative to traditional cryptocurrencies, as they are pegged to fiat currencies such as the U.S. dollar. Tether (USDT), the largest stablecoin by market cap, has historically faced challenges maintaining its peg. For example, Tether was fined $41 million by the Commodity Futures Trading Commission (CFTC) in 2021 for inaccurately claiming full backing by U.S. dollars. Since then, Tether has resolved the issue, stating its tokens are now 100% backed by reserves.
Time will tell if Ripple’s RLUSD can avoid similar challenges and gain investor trust. The success of RLUSD depends on Ripple’s ability to maintain its peg to the dollar and establish credibility in the stablecoin market.
XRP’s Strong Market Performance
In addition to RLUSD’s launch, XRP’s price rally comes amid broader market optimism, partly driven by political developments. XRP has surged over 500% since Nov. 5, outperforming larger tokens like Bitcoin (BTC) and Ethereum (ETH). The token’s remarkable performance has propelled it to become the third-largest cryptocurrency by market capitalization, behind only Bitcoin and Ethereum. As of early Tuesday, XRP’s market cap reached $137.3 billion.
The rise of XRP has also been fueled by investor expectations of crypto-friendly policies under a possible new Trump administration. Historically, cryptocurrency markets have reacted positively to favorable regulatory outlooks, and many anticipate reduced scrutiny and enhanced innovation opportunities.
Ripple’s Growing Influence in the Crypto Industry
Ripple’s launch of RLUSD represents a strategic move to expand its ecosystem and solidify its role as a central player in global finance. Stablecoins are increasingly seen as vital tools for cross-border payments, remittances, and decentralized finance (DeFi) applications. By leveraging its robust payment platform, Ripple can compete with existing stablecoin leaders and attract institutional investors seeking stability and trust.
Ripple’s move comes at a time when regulatory bodies are focusing on stablecoin transparency and reserves. The company’s emphasis on full U.S. dollar backing aligns with these regulatory expectations, potentially giving RLUSD a competitive edge in the market.
Key Takeaways
1. XRP Price Surge: XRP rose 14.6% in the past 24 hours to $2.71, driven by Ripple’s RLUSD launch.
2. Stablecoin Debut: RLUSD is fully backed by U.S. dollar reserves and will initially be available on platforms like Uphold and Bitso.
3. Competitive Market: Ripple now competes directly with stablecoin giants such as Tether (USDT) and PayPal.
4. XRP’s Growth: XRP’s market cap hit $137.3 billion, making it the third-largest cryptocurrency globally.
5. Political Influence: Expectations of a crypto-friendly Trump administration have contributed to XRP’s upward momentum.
Ripple’s RLUSD launch marks a significant milestone for the company and the broader cryptocurrency industry. By introducing a fully-backed stablecoin, Ripple aims to strengthen its payment platform and compete with leading stablecoin players. The price surge of XRP highlights investor confidence in Ripple’s strategy and its growing influence in the crypto market.
All eyes will be on its performance and whether Ripple can maintain its promise of stability. Investors and crypto enthusiasts should watch this space closely as Ripple’s innovation continues to reshape the digital asset landscape.
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