Ripple’s XRP is at the center of growing attention due to major ecosystem developments and price movements.
Ripple’s XRP is at the center of growing attention due to major ecosystem developments and price movements. The upcoming RLUSD stablecoin, pegged to the U.S. dollar, is set to launch on the XRP Ledger (XRPL) and Ethereum blockchains, backed 1:1 by cash reserves and short-term cash equivalents like U.S. Treasury bills. Approved by the New York Department of Financial Services, RLUSD will require XRP for transaction fees, which are burned during transfers, driving demand for the token. Axelar co-founder Georgios Vlachos noted that RLUSD’s utility, particularly in emerging economies where stablecoins are widely used for transactions and savings, will significantly boost XRP adoption in 2025. Axelar’s interoperability platform also links XRPL to 69 other blockchains, enabling seamless integration.
XRP experienced a historic rally in late 2024, hitting a seven-year high of $2.90 on Dec. 3 before settling at $2.40. This surge followed pro-crypto rhetoric from U.S. President-elect Donald Trump, who promised regulatory changes to support the crypto industry after his electoral win on Nov. 5. Ripple’s ongoing partnerships, such as its collaboration with the Axelar Foundation to expand the XRPL EVM sidechain’s connectivity to over 80 blockchains, have also fueled optimism. Ripple’s developer-focused account revealed that these efforts would reduce transaction costs and increase network efficiency.
Meanwhile, market interest in XRP continues to grow. On Dec. 1, XRP surpassed Solana in market capitalization, ranking as the fourth-largest cryptocurrency with a current market cap of $138 billion, close to Tether’s $140 billion. This shift was bolstered by asset management firm WisdomTree’s filing for an XRP exchange-traded fund (ETF) on Nov. 25, joining earlier applications from Bitwise, Canary Capital and 21Shares. These developments underscore XRP’s increasing prominence among both institutional and retail investors.
The RLUSD launch has sparked a mix of excitement and speculation. Ripple’s Chief Technology Officer, David Schwartz, cautioned against paying inflated prices for the stablecoin during its early days, as initial supply shortages could lead to temporary market imbalances. Schwartz reminded users that RLUSD is designed to maintain a stable value of $1 and is not intended as an investment. He also highlighted that arbitrage would quickly stabilize any price fluctuations.
XRP’s recent gains reflect a combination of market catalysts, including favorable regulatory prospects, technical advancements, and rising institutional interest. With the RLUSD stablecoin set to play a critical role in XRP’s ecosystem, the token is poised to remain a key player in the cryptocurrency market heading into 2025.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
