Ripple has minted another 25 million RLUSD, expanding its stablecoin supply and fueling speculation about XRP’s future. Many investors wonder if this latest move will push XRP past $2.50. Understanding the connection between RLUSD and XRP is key to evaluating the potential impact.
Why 25M RLUSD Matters for Ripple’s Growth
Ripple’s stablecoin initiative has been one of the most anticipated developments in crypto. RLUSD, designed as a regulated stablecoin, now circulates across Ethereum and the XRP Ledger (XRPL). Currently, $125 million RLUSD is on Ethereum, while $44 million exists on XRPL.
At first glance, the supply split may seem unbalanced. However, Ethereum remains the most active DeFi network, while XRPL is still expanding its ecosystem. Ripple’s decision to distribute RLUSD this way ensures strong liquidity where demand is highest. Now, with RLUSD’s total supply reaching $170 million, traders are closely watching XRP for a reaction.
XRP Holds at $2.32 – Will It Break Higher?
Despite the 15% increase in RLUSD’s supply, XRP has yet to see a major price reaction. Currently, XRP trades at $2.32, reflecting a 1.6% gain in the past 24 hours. However, this movement mirrors broader market trends, making it unclear whether RLUSD’s expansion directly influenced the price.
Long-term, RLUSD could still become a powerful driver for XRP’s growth. If XRPL’s stablecoin adoption accelerates, more transactions and liquidity could increase demand for XRP as a bridge currency. Ripple’s strategic push into stablecoins could position XRP for future gains.
How RLUSD Could Fuel XRP’s Growth
Compared to dominant stablecoins like USDT and USDC, RLUSD remains small, with a $170 million market cap. However, this offers significant room for expansion. Ripple’s deep resources could help scale RLUSD into a widely adopted stablecoin.
RLUSD’s success could benefit XRP by increasing network transactions, expanding XRPL’s DeFi capabilities, and positioning Ripple as a leading stablecoin provider. Stronger RLUSD adoption could lead to a more robust XRP market, making the cryptocurrency more valuable over time.
Despite these opportunities, challenges remain. Ethereum’s established DeFi dominance makes it difficult for XRPL to compete in the short term. Additionally, XRP’s price has yet to show a clear correlation with RLUSD supply growth. For now, traders should watch for signs of increasing stablecoin usage on XRPL to gauge potential impacts on XRP’s valuation.
Can RLUSD Help XRP Surpass $2.50?
Predicting a price breakout remains uncertain. While RLUSD’s expansion boosts Ripple’s ecosystem, XRP’s price remains influenced by broader market trends. However, continued RLUSD adoption could help Ripple generate new revenue streams, attract institutional interest, and solidify XRP’s role in the growing stablecoin economy.
Read Also: Ripple Secures DFSA Approval—XRP Climbs 4.64% to $2.32
For long-term holders, the key focus should be adoption growth. If RLUSD scales and XRPL strengthens as a stablecoin-friendly network, XRP’s demand could rise, leading to potential price appreciation.
What Should XRP Investors Watch Next?
Ripple’s stablecoin expansion presents both opportunities and risks. Investors should monitor RLUSD’s adoption on XRPL, regulatory developments affecting Ripple, and overall market sentiment surrounding stablecoin growth. If RLUSD gains significant traction, it could provide strong support for XRP’s future price action.
