XRP News: Ripple’s RLUSD Stablecoin Could Boost XRP Price Stability

Published by

Vignesh S G

December 7, 2024

Ripple is preparing to launch its stablecoin, RLUSD, and experts believe it could bring significant changes to the XRP market. They predict that RLUSD might drive demand and establish higher baseline prices for XRP.

Here’s a closer look at its expected impact.

How RLUSD Can Minimise XRP Transaction Volatility

Highlighting RLUSD’s capability to reduce risks related to currency fluctuations, experts state that the stablecoin of Ripple could act as a stable intermediary for XRP purchases.

This implies that institutions can use RLUSD to purchase XRP without bothering about sudden value shifts.

RLUSD could also help institutions execute large-scale XRP purchases, which might clear lower-priced XRP from exchange order books. For example, if a bank deposits $1 billion in RLUSD to buy XRP, the large purchase could push XRP’s price higher by removing cheaper XRP from the market.

As supply dwindles, a higher baseline price could emerge, strengthening XRP’s market position.

Attracting Institutional Adoption

Efficiency and stability are two key benefits RLUSD is expected to bring. These features could make Ripple’s platform more appealing for cross-border payments and attract greater institutional interest in XRP. Experts believe this increased interest could positively influence XRP’s price over time.

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A Transformative Step for XRP

Ripple’s RLUSD stablecoin holds immense potential to transform the XRP market. By reducing volatility, boosting liquidity, and encouraging institutional adoption, RLUSD could pave the way for XRP to become a more stable and attractive asset.

This launch could mark a significant turning point for Ripple and the broader crypto market.

FAQs

What is RLUSD and how will it affect XRP prices?

RLUSD is Ripple’s stablecoin, and it could stabilize XRP transactions, driving institutional demand and boosting XRP’s baseline price.

How does RLUSD minimize XRP transaction volatility?

RLUSD acts as a stable intermediary, reducing currency fluctuation risks, allowing institutions to make large XRP purchases without price shifts.

With RLUSD in play, XRP’s market dynamics may never be the same again.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.