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RLUSD is the new stablecoin issued by the company Ripple Labs.
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With this new product, the usefulness of the XRP Ledger increases.
XRP could be about to skyrocket towards all-time highs thanks to the launch of RLUSD, Ripple Labs’ stablecoin. This is explained by Adam Cochram, Cryptocurrency market specialist, who in his latest analysis highlights the potential of this new product.
He think that the stablecoin It has all the features to integrate into the banking infrastructureproviding solutions to improve the efficiency of international money transfers, reduce costs and transaction times.
As CriptoNoticias has reported, RLUSD maintains a 1:1 peg to the US dollar through backing of US dollar deposits, short-term US Treasuries and other cash equivalent instruments.
For Cochram, that makes RLUSD an attractive asset for financial institutions looking for solutions in networks of cryptocurrencies but, at the same time, they have to comply with strict financial regulations.
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“I believe that RLUSD is the Trojan horse to introduce cryptocurrencies to the multimillion-dollar Forex markets, without the need to wait for sophisticated updates,” adds the specialist.
Cochram uses the metaphor of the Trojan horse to refer to How the introduction of RLUSD could significantly boost adoption of XRP.
This is because RLUSD operates both in Ethereum-eth/” target=”_blank” rel=”noreferrer noopener”>Ethereum as in XRP Ledger, whose native currency is XRP.
If the stablecoin is used by banks and large financial institutions, the transaction volume on XRP Ledger will grow and, therefore, the use of XRP for the payment of commissions will increase. That creates upward pressure that could take its price to all-time highs.. In this regard, Cochram says:
“Memes about Ripple reaching prices of $5 or $10 may seem far-fetched, but when considering the opportunity in RWA exchanges that Ripple could enable, those numbers could become realistic, thanks to the enormous value these ecosystems represent.”
Adam Cochram, cryptocurrency market specialist.
The analyst highlights that XRP Ledger can tokenize real world assets (RWA), but it has not yet been successful because banks prefer to set prices in dollars instead of using a Automated Market Maker (AMM). These are protocols that allow tokens to be exchanged without an order book, and they do so by creating liquidity pools and algorithms that manage prices and transactions automatically.
With RLUSD, Ripple Labs responds to this demand and, in addition, you have the opportunity to unlock your potential and attract more liquidity to your ecosystem.
What has to happen for XRP to trade at $10?
The optimism that Cochram expresses is similar to that of the entire Ripple Labs community around the launch of RLUSD. However, it is worth asking how likely it is that XRP will trade above $5.
Before continuing, it is important to clarify that at the time of publication of this note the price of the cryptocurrency is 2.40 dollars and its market capitalization is more than 138 billion dollars.
XRP quote from October to December 19, 2024. Source: TradingView.
Now, for XRP to reach $5, the market capitalization would have to reach $250 billion.
While to reach $10, it would have to be worth more than $571 billion. If achieved, would displace ether (ETH), the native currency of Ethereumas the second most valuable asset on the market, a position that XRP already occupied in 2017.
Another issue to highlight is that would be placed on the list of the 20 most valuable assets in the worldabove companies such as MasterCard ($477 billion), Oracle ($462 billion) or Netflix ($380 billion).
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