Ripple Labs unveils stablecoin RLUSD as the crypto community considers it to bolster XRP activity.
With the momentum flooding the crypto industry following Donald Trump’s re-election in November, XRP has staged a great rebound to overcome the tough multi-year suppression. Notably, XRP surged 300%, pushing the altcoin to a new peak.
The XRP army considers that the altcoin has yet to cool off, as unveiling the native stablecoin RLUSD on the XRPL would propel it further.
Will XRP Fly Higher?
Despite Bitcoin capturing investors’ attention as it pushes its all-time high towards $110K, XRP is poised to finish off 2024 strongly. Such is marked by a surge in activity as witnessed on Xaman, the most utilized wallet on the XRP Ledger ecosystem. It coincides with XRP witnessing record levels of open interest for XRP this month.
Additionally, the XRP is leveraging regulatory progression, particularly with the revelation of Gary Gensler’s exit from the US Securities and Exchange Commission. Following the news of the SEC chair exit, Ripple chief Brad Garlinghouse announced that Ripple secured the approval of RLUSD stablecoin by the New York Department of Financial Services (NYDFS).
The XRP is riding on the hype of the on-chain stablecoin that became available on Dec. 17 across several crypto exchanges, including Uphold, Archax, CoinMENA, Bitso, and MoonPay. It leaves XRP to enjoy rejuvenation after enduring the long winter as it battled legal action by the SEC.
The coin appears to celebrate in style the speculation of SEC under the Donald Trump administration dropping the multi-year-long case against Ripple.
A reflection of 12-month performance shows XRP is up 317.9%, with the win likely rolling in as the native stablecoin RLUSD became a reality on Tuesday. With the RLUSD debut, the market participants anticipate it will bolster the blockchain’s on-chain activity.
Traders and DeFi Community Flock to XRP
The XRP has witnessed heightened interest as traders and DeFi users embrace the blockchain. Xaman, the self-custodial wallet for XRP Ledger, has witnessed a 250% uptrend in activity in consecutive months and hit 212,000 active usage last week. For context, Xaman only witnessed 80,000 active weekly users this time in 2023.
Besides DeFi users fueling the project, traders acknowledge XRP momentum as it experiences records of open interest. The greater levels of open interest signal more inflows flooding into the XRP positions.
RLUSD Debut A Boost to Tokenisation Trend
Ripple’s team clarified that RLUSD will maintain its peg to the dollar by fully backing it with cash reserves. As it went live on XRP Ledger and Ethereum, the RLUSD transactions will involve XRP for gas fees, thereby accelerating the altcoin demand.
The Ripple team added that US dollar deposits will back the token alongside cash equivalents and government bonds. The composite nature is designed to guarantee liquidity, reliability and stability of RLUSD.
Axelar’s Georgia Vlachos acknowledges that RLUSD will bolster the demand for XRP, thus fueling its prices higher. The executive pointed out that individuals hailing from emerging economies regions consider stablecoins as a medium of exchange and a means to store value.
Ripple CEO hailed the RLUSD debut as harboring bullish potential amid the evolving legislative environment. He added that the US shift towards clearer regulations will boost the adoption of stablecoins.
Garlinghouse believes that RLUSD stablecoin will provide real utility as it leverages years of trust in Ripple and exceptional expertise in the crypto industry.
Meanwhile, a recent publication by Citi Wealth hailed the input of stablecoins. The authors consider stablecoins to enhance the accessibility of US dollars globally. With most stablecoins pegged to the dollar, the tokens reinforce the longstanding of the US currency.
Besides the debut of RLUSD, the latest development involves the USDC issuer Circle partnering with the world’s largest crypto exchange, Binance. The latter will guarantee USDC expansion and seamless usage for trading, saving, and payments.