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XRP whales are on fire after blockchain payments company Ripple officially launched its dollar-backed stablecoin RLUSD on multiple global cryptocurrency exchanges this Tuesday. The stablecoin is currently tradable on Bitso, Uphold, CoinMENA, MoonPay, and Archax platforms, with additional listings expected soon.
Ripple RLUSD stablecoin launched amid price fluctuations
RLUSD is designed to maintain a stable value in line with the US dollar and is compatible with both the Ethereum (ETH) blockchain and the XRP Ledger (XRPL), the latter being developed by Ripple Labs along with XRP. I am.
However, RLUSD experienced some volatility shortly after its launch, trading at $1.50 on MoonPay early Tuesday, which Fortune acknowledged was an unexpected premium over its intended value.
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Ripple Chief Technology Officer David Schwartz predicted a potential price difference in an earlier post about X. He explained that the early supply shortage could cause RLUSD to trade at a premium until the market stabilizes.
Schwartz reassured investors: “But rest assured, once supply stabilizes, prices will quickly return to near $1. If not, something very seriously wrong is happening.”
Interestingly, RLUSD's elevated price of $1.50 is a fraction of the price it was previously listed on Xaman, a cryptocurrency wallet for the XRP ledger. Ahead of the launch, Ripple supporters placed bids for the first RLUSD token, with some investors willing to pay as much as 511XRP (about $1,300 per token).
XRP recovers to $2.52 after initial spike
As activity on the XRP Ledger increases with the launch of RLUSD, interest in XRP itself has skyrocketed. The value of the token, which is used to settle transaction fees on the blockchain, rose 6% on Monday to a peak of $2.71. However, it subsequently fell back to the $2.52 level.
Cryptocurrency analyst Ali Martinez reported that large investors, or “whales,” bought an additional 30 million XRP before the launch, further increasing the price. In contrast, Bitcoin (BTC) and Ethereum experienced declines of 2.6% and 4.6%, respectively, during the same period.
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The launch of RLUSD follows recent regulatory approval from the New York Department of Financial Services and will increase Ripple's presence in the cross-border payment network space.
“The stablecoin market is entering its next growth spurt, and we will see more institutional adoption based on institutional use cases,” said Jack McDonald, Ripple’s senior vice president of stablecoins. He emphasized the possibility of introducing the institution. He emphasized that stablecoins are the “killer app” for global payments.
While initial interest in RLUSD has primarily come from retail investors, Ripple will integrate the stablecoin into its payments business starting next year to facilitate international transactions for banks and institutional partners around the world. That's what I'm aiming for.
The daily chart shows the price movement of XRP after the launch of RLUSD on Tuesday. Source: XRPSDT on TradingView.com
Featured image from DALL-E, chart from TradingView.com
