Is This the End of XRP? Decoding the Impact of Ripple’s Stablecoin Launch

The news of Ripple’s plan to launch a stablecoin backed by the US dollar has stirred up a lot of talk lately, especially about what it means for XRP, Ripple’s native cryptocurrency. People are wondering if this new stablecoin might overshadow XRP’s role in the crypto world. However, a prominent crypto expert named Krippenreiter thinks otherwise.

He believes that XRP’s unique features and usefulness will stay strong, even with the stablecoin on the scene.

Stablecoins vs. XRP

Krippenreiter explains that stablecoins and XRP serve different purposes but can still exist together in the crypto world.

Stablecoins like the one Ripple is planning to launch keep their value stable by being tied to real assets like the US dollar. They depend on issuers and institutions. On the other hand, XRP operates globally without relying on any specific entity, making it less risky and more transparent.

While stablecoins might face issues being used across different platforms, XRP remains a single currency on the XRP Ledger, thanks to its built-in decentralized exchange (DEX). This uniqueness makes transactions smoother and more reliable within the XRP ecosystem.

Krippenreiter points out that if trust in the US dollar drops, stablecoins tied to it might face challenges. This is where XRP’s global neutrality shines, as it isn’t tied to any specific currency’s fate.

Read More: Ripple Reveals Auto-Bridging for Efficient Stablecoin Swaps on XRPL

Decentralization and Transparency: XRP’s Strengths

Unlike stablecoins, where changes are decided by their issuers, any changes in XRP’s supply require agreement among participants on the XRP Ledger. This ensures transparency and decentralization, key principles in the world of cryptocurrency.

Not the End for XRP

Despite concerns, Krippenreiter believes that XRP will maintain its prominence in the crypto space. He pointed out the substantial size of the stablecoin market, which dominates 51% of the Ethereum network and decentralized exchanges.

Given stablecoins’ growing dominance in the crypto space, Krippenreiter believes Ripple’s stablecoin project could record success. He believes the new XRPL AMM functionality would lead to the launch of AMM with currency pairs involving XRP and the Ripple stablecoin.

XRP’s Resilience

Mr. Huber, an on-chain analyst, had previously questioned Ripple’s delay in introducing a liquid stablecoin on the XRPL despite years of network development. Some speculated that Ripple’s decision to continue leveraging XRP for cross-border settlements hinted at its long-term commitment to the digital asset.

However, Krippenreiter believes that the introduction of a Ripple stablecoin does not necessarily signal the end for XRP. He emphasized the fundamental differences between stablecoins and XRP, highlighting unique features that set XRP apart.

In the end, while Ripple’s stablecoin plans have sparked discussions, Krippenreiter’s insights reassure us of XRP’s endurance. As the crypto world continues to evolve, XRP’s distinct features and utility are likely to keep it standing strong, proving its worth time and time again.

Also Read: XRP Price Explosion Incoming? Analysts Predict $3-$5 Surge by September 2025