tl;dr
Ripple's stablecoin RLUSD gained support from the cryptocurrency exchange Bullish. XRP rebounded to $2.27 after a correction, with analysts predicting a substantial rally in the short term. The stablecoin RLUSD, pegged 1:1 to the American dollar, became live after approval from the New York Departme...
Ripple’s stablecoin RLUSD gained support from another well-known cryptocurrency exchange. XRP rebounded to $2.27 after a correction, with analysts predicting a substantial rally in the short term.
After months of testing and preparation, Ripple’s stablecoin officially went live mid-December. This became possible after the New York Department of Financial Services (NYDFS) approved it. The product, called RLUSD, is pegged 1:1 to the American dollar and designed to play a crucial role in Ripple’s cross-border payment solutions. Upon launch, the stablecoin was embraced by multiple cryptocurrency exchanges, such as Uphold, Bitstamp, Bitso, Moonpay, CoinMENA, and others. Most recently, the Peter Thiel-backed Bullish also joined the list.
Earlier this month, Ripple’s CTO David Schwartz warned the community about a potential volatility surrounding the product. According to CoinGecko’s data, RLUSD started trading at approximately $1 upon launch, but in the following days, it hovered between $0.96 and $1.06. The valuation has stabilized since the beginning of the week, currently set at around $0.99.
Numerous industry participants have maintained that RLUSD’s introduction could be among the factors fueling a price rally for Ripple’s native token. In fact, XRP saw a substantial pump in mid-December (when the product saw the light of day), with its price tapping $2.70. However, the crypto market correction witnessed at the end of last week suppressed the asset to under $2. In the last few days, the bulls managed to recover some of the lost ground, and XRP is currently worth around $2.27.
One element indicating that Ripple’s native token could indeed experience a price jump in the near future is the whales’ activity. Ali Martinez claimed that such large investors have purchased millions of tokens in the past week. These actions decrease the available supply of XRP on the open market, potentially leading to a price increase if demand remains steady or grows. Significant whale purchases might also generate enthusiasm among smaller investors, encouraging them to buy in as well, which could amplify the upward momentum.