Ripple RLUSD stablecoin surges in trading volume, boosting XRP demand and positioning Ripple for a strong 2025 with increased liquidity and regulatory support.
Ripple’s recently launched stablecoin, RLUSD, has been creating waves in the crypto market with a dramatic increase in trading volume and an uptick in XRP demand. This article explores the success of RLUSD, its impact on Ripple’s ecosystem, and how it is poised to play a major role in boosting the demand for XRP in 2025.
The Meteoric Rise of Ripple RLUSD Stablecoin
Ripple RLUSD stablecoin has seen an amazing 2,000% increase in trading volume, according to data from CoinMarketCap. This huge jump has caught the attention of investors and crypto fans. In a short time, RLUSD reached a trading volume of $611 million, making it one of the top-traded stablecoins, even though its market value is only $53 million. Currently, RLUSD coin trading at $1 on the coinmarketcap.
This big achievement has raised some questions, especially since the stablecoin is still new. Some people have doubted the data, but experts explain that most of the trading volume comes from the Bullish exchange, which makes up over 96% of RLUSD’s 24-hour trading volume.
Interestingly, the trading volume is mostly from a few large investors, meaning that big institutions are driving RLUSD’s success. The high liquidity on Bullish is important, but there are concerns about the pair’s low liquidity, which suggests that a lot of the activity is linked to Ripple’s products rather than small, regular investors.
Ripple’s RLUSD and XRP’s Liquidity Boost
The launch of the Ripple RLUSD stablecoin is expected to bring more liquidity to Ripple’s XRP system, helping both regular and big investors. RLUSD gives institutions a way to make large transactions with less slippage, which has been a problem before due to the low liquidity on the XRP network.
With a strict 1:1 peg to the US dollar, RLUSD is designed to be stable and easily integrated into Ripple’s existing infrastructure. The stablecoin is backed by cash reserves and short-term US Treasuries, offering reliability for institutional transactions.
One key factor in the success of RLUSD is its ability to settle transactions using the XRP Ledger (XRPL) and XRP-EVM sidechains. This means that every transaction involving RLUSD requires the use of XRP, increasing demand for the token and driving its value upward. With higher transaction volumes and liquidity, Ripple’s XRP network stands to benefit greatly from the rise of RLUSD.
Ripple’s Future with RLUSD
The launch of RLUSD is a big step for Ripple. It makes Ripple a leader in using stablecoins in the crypto world. Ripple is known for its business solutions for international payments. RLUSD is the next step in offering more options for both large and small investors.
In January 2025, Ripple is expected to release an attestation report showing the breakdown of assets backing the Ripple RLUSD stablecoin. This transparency will likely enhance investor confidence and further increase the demand for RLUSD and, consequently, XRP.
Ripple’s legal win in its fight with the U.S. Securities and Exchange Commission (SEC) has made it easier for the company to operate in the U.S. The SEC had sued Ripple, claiming XRP was a security. But in 2023, Ripple won a partial victory when the court ruled that XRP is a security when sold to institutions, but not when sold to regular investors on exchanges. This decision has cleared the way for Ripple to do business more easily in the U.S.
Ripple’s Position in the Political Landscape
The upcoming U.S. presidential inauguration of Donald Trump could also affect Ripple and its stablecoin, RLUSD. Trump’s government has shown more support for cryptocurrency and might make rules that help the crypto industry. Many people in the crypto world hope these changes will help Ripple and other blockchain companies.
The inauguration might not raise the price of XRP right away. But it is expected to create friendlier rules. This will likely help Ripple and RLUSD in the future.
For the latest updates about cryptocurrency news, visit Coin Mozo on X.
Conclusion:
Ripple RLUSD stablecoin has already made a big impact in the crypto world, breaking records and increasing demand for XRP. As the stablecoin becomes more popular and easier to trade, Ripple’s ecosystem will keep growing, and XRP will become even more important in the crypto market.
With the support of the Trump administration’s crypto-friendly policies and the growing use of Ripple’s products, the future looks bright for both RLUSD and XRP in 2025. Investors should pay close attention to Ripple’s progress in the coming months as the company keeps improving and changing the cross-border payments industry.
Also Read: Bitcoin’s Price Outlook: Why Bitcoin Is Struggling to Rally Above $105K
