Whales Snap Up 30 Million XRP As Ripple Launches Its RLUSD Stablecoin

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As a seasoned researcher with a penchant for blockchain and digital currencies, I find myself intrigued by the recent developments surrounding Ripple‘s stablecoin, RLUSD. The launch on multiple global exchanges has ignited a flurry of activity, not just in the crypto world, but also within my own research.

Large XRP investors have been actively purchasing the cryptocurrency following the launch of Ripple’s USD-backed stablecoin, RLUSD, on various international crypto exchanges like Bitso, Uphold, CoinMENA, MoonPay, and Archax. This new stablecoin is now open for trading on these platforms, with more listings anticipated in the near future.

Ripple RLUSD Stablecoin Launches Amid Price Volatility

The RLUSD (Ripple-issued USD) is built to keep its worth consistent with the U.S. dollar, and it can operate seamlessly on both the Ethereum network and the XRP Ledger, a platform jointly developed by Ripple Labs along with XRP.

Initially, upon its debut, I found myself holding RLUSD, which unexpectedly showed signs of volatility. On a typical Tuesday morning, it traded at an unanticipated high of $1.50 on MoonPay—a figure notably above its intended value, a fact confirmed by Fortune Magazine later in the day.

In an earlier post, David Schwartz, Ripple’s Chief Technology Officer (CTO), foresaw possible price differences regarding X. He clarified that temporary supply scarcities might cause RLUSD to trade above its actual value until the market reaches equilibrium.

As a crypto investor, I’d like to offer some comforting words: “I firmly believe that the price will return to almost its initial value, around $1, once the supply finds equilibrium. If this doesn’t happen, then it might indicate some significant issues.

It’s noteworthy that the current price of RLUSD at $1.50 is significantly lower compared to its original listing price on Xaman, a digital wallet designed for the XRP ledger. In anticipation of its launch, supporters of Ripple placed bids for the initial RLUSD tokens, with some investors even offering up to 511 XRP, which equates to around $1,300 per token.

XRP Retraces To $2.52 After Initial Spike

With the commencement of RLUSD’s launch sparking heightened action on the XRP Ledger, there’s been a significant uptick in interest towards XRP. This digital token, employed for settling transaction fees within the blockchain, experienced a 6% increase in worth on Monday, reaching an apex of $2.71. Yet, it has since returned to $2.52.

According to crypto analyst Ali Martinez, whales, or big-time investors, purchased an extra 30 million units of XRP before its launch, which strengthened its price. On the other hand, Bitcoin (BTC) and Ethereum saw decreases of 2.6% and 4.6%, respectively, within the same time period.

Following approval from the New York Department of Financial Services, Ripple is now ready to debut (or initiate), expanding its influence within the payment network industry for cross-border transactions, focusing on enhancing its role in this sector.

As a researcher focusing on stablecoins at Ripple, I’m eager to underscore the promising potential we see for widespread institutional adoption. This upcoming growth phase in the stablecoin market is primarily driven by an increase in institutional involvement, which is rooted in the unique applications these digital assets offer, particularly in the realm of global payments. In essence, stablecoins are poised to serve as a transformative tool in this field, acting as a “game-changer” or, as some might say, a “killer app.

Interest in RLUSD (Ripple’s stablecoin) primarily stems from individual investors at present. However, Ripple intends to incorporate this stablecoin into their payment solutions, enabling smooth international transaction processing for global banks and institutional collaborators, with plans to start implementation by the next year.

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2024-12-18 16:34