News View Non-AMP

XRP News: RLUSD Stablecoin – Game Changer or Threat to XRP?

Published by
Mustafa Mulla

As Ripple gets ready to launch its RLUSD stablecoin, some in the XRP community are concerned about how it might affect XRP’s relevance. RLUSD, now in beta testing, is set to be released soon and will be available on both the XRP Ledger (XRPL) and Ethereum. It could also play a part in Ripple’s On-Demand Liquidity (ODL) services.

While RLUSD offers exciting potential, some supporters are worried it might reduce the importance of XRP, especially for cross-border payments. Read on for the details, and decide for yourself.

XRP Holds a Unique Spot – and Always Will!

David Schwartz, Ripple’s CTO, responded by assuring that XRP has certain features on the XRPL that RLUSD can’t replace. For example, only XRP can pay transaction fees on the XRPL, and each account must hold a reserve of XRP. He also pointed out that XRP’s big advantage over stablecoins is that it has no counterparty risk and isn’t tied to any jurisdiction, unlike stablecoins.

Schwartz highlighted XRP’s “autobridging” function, which automatically connects liquidity between different assets on the XRPL.

This makes XRP a crucial part of the system, not just for transactions but as a bridge asset between digital currencies.

Schwartz did admit that if RLUSD or other stablecoins become more efficient, XRP might face competition. However, he believes that XRP’s unique features make it hard for stablecoins to fully replace it.

Could Increasing XRP Scarcity Boost Its Value?

Some in the XRP community have suggested raising transaction fees or the minimum balance of XRP on the XRPL to make XRP more scarce and possibly increase its value. Schwartz explained that such changes would need agreement from the community and said the XRPL should focus on usability rather than speculation.

Ripple’s exploration of new features, like the EVM sidechain and smart contracts, aims to expand XRPL’s functionality while ensuring XRP’s critical role remains irreplaceable.

XRP’s Price Outlook: What’s Next?

At the moment, XRP is trading at $0.53, down by 0.8%. The market outlook is mixed. A bullish pennant pattern on the weekly chart suggests that XRP could break out soon.

Meanwhile, the 14-day Relative Strength Index (RSI) is at 37.96, indicating that XRP is nearing oversold levels, which could lead to a small price increase. If Ripple’s legal issues are resolved, some experts believe XRP could see significant gains, with price predictions ranging between $2.47 and $10 in a strong market.

What do you think? Will RLUSD jeopardize XRP’s future?

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Pi Network News Today: New DApps, New Momentum: Pi Network Gears Up Ahead of Consensus 2025

With Consensus 2025 just weeks away, new Pi Core Team (PCT) updates are drawing attention…

April 25, 2025

Ripple News: CME to Launch XRP Futures, CEO Reacts

There's big news for XRP holders — the Chicago Mercantile Exchange (CME) has officially announced…

April 25, 2025

Binance U.S Adds Base Network Support – ETH and USDC Transfers Now Live

Binance U.S has officially integrated the Base network, allowing users to deposit and withdraw Ethereum…

April 25, 2025

XRP Price Analysis: Breakout or Breakdown Ahead?

The price of XRP has been moving sideways without any clear direction for the past…

April 25, 2025

Federal Reserve Eases Crypto Rules for U.S. Banks

The U.S. Federal Reserve has officially rolled back key rules that once restricted how banks…

April 25, 2025

Sui (SUI) Price Analysis Today: Key Targets to Consider Ahead

The Sui network has attracted significant investment from institutional investors seeking to capitalize on its…

April 25, 2025