• Ripple’s stablecoin RLUSD has officially launched on Ethereum and XRP Ledger (XRPL)
• RLUSD’s price initially fluctuated within a 20% range before settling at $1, leading to a temporary 2.2% drop in XRP price
• Major exchanges like Bitstamp and Mercado Bitcoin are expected to list RLUSD soon, while services like MoonPay already offer RLUSD purchases
Ripple, the renowned San Francisco crypto company, has officially launched its stablecoin, Ripple USD (RLUSD), creating a significant shift in the stablecoin market. The RLUSD will operate on two networks, Ethereum and Ripple’s native ledger, XRPL, allowing users to interact with RLUSD officially.
RLUSD’s Initial Market Fluctuation
Upon its introduction on various decentralized exchanges, the price of RLUSD experienced a notable fluctuation within a range of 20% as it was initially pegged to the U.S. dollar at a 1 to 1 ratio. However, according to XPMarket, the price of RLUSD has now steadied at $1.
Ripple CTO’s Warning on Stablecoin Supply
Ripple CTO, David Schwartz, had earlier cautioned about a potential initial shortage of stablecoin supply. This scarcity could lead to a hike in the price of the coin, contradicting its intended stability in pricing.
Impact on XRP Price
Intriguingly, the launch of the stablecoin resulted in a sharp drop of over 2.2% in the price of XRP, coming down to $2.635 per token at one point. This decline is likely attributed to users exchanging their cryptocurrency for RLUSD, either for testing purposes or due to the surrounding hype. However, the XRP rate has started to recover and is gradually turning green.
Future Expectations for RLUSD
In the foreseeable future, RLUSD is expected to be listed on major exchanges like Bitstamp or Mercado Bitcoin. Meanwhile, services such as MoonPay have already begun offering stablecoin purchases via Apple Pay. Several other off- and on-ramp services are also facilitating transactions with RLUSD.
The Stablecoin Market Outlook
The cryptocurrency market has seen numerous successes and failures in the stablecoin sector. Predictions suggest that this niche could surpass $2.3 trillion in the upcoming years. How and where Ripple USD will position itself in this landscape remains a topic of interest.
