RLUSD Stablecoin to Boost XRP Demand
Date: 2024-12-16 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
XRP, a cryptocurrency with a maximum supply of 100 billion tokens, is experiencing a new surge in popularity. After a historic surge in value in November 2024, fueled by political events and ecosystem developments, XRP reached a seven-year high of $2.90. However, the price later rolled back to $2.40, with the RSI indicator indicating that the asset is overbought.
Vlachos explains that RLUSD will play a significant role in future transactions. According to him, stablecoins are popular as a means of saving and settlements, especially in developing countries. RLUSD is expected to be used on the XRP Ledger platform and the XRP-EVM sidechain. To complete transactions, users will pay a fee in XRP, which will result in the burning of a certain number of tokens.
Among the factors supporting interest in XRP, Vlahos highlights political changes in the United States. Donald Trump's victory in the presidential election on November 5, 2024, has caused optimism among crypto investors. The new president's pro-regulatory rhetoric has strengthened expectations of a favorable environment for digital assets.
Additionally, on November 25, WisdomTree joined Bitwise, Canary Capital, and 21Shares in filing with the SEC to create an exchange-traded fund (ETF) based on XRP. This has increased attention to the cryptocurrency, which on December 1 overtook Solana in market capitalization, taking fourth place among all crypto assets.
According to CoinMarketCap, XRP's market capitalization has reached $138 billion, which is only $2 billion less than Tether's capital.
On December 10, 2024, the New York Department of Financial Services (NYDFS) approved the issuance of the RLUSD stablecoin. The new asset will be backed by reserves in the form of fiat money and US Treasury bonds, allowing RLUSD to be redeemed at a 1:1 ratio with the dollar.
All of this together creates the basis for further strengthening of XRP as a key player in the cryptocurrency industry, especially against the backdrop of the growing popularity of stablecoins and integration with developing blockchains.
