RLUSD, the stablecoin of Ripple, has seen a trading volume of $35.073 million, marking a 180% rise within the last 24 hours. This increase can be mainly blamed on the challenges experienced by Tether USDT in complying with the European Union’s MiCA regulatory requirements. This can lead to XRP price rise.
The doubt surrounding USDT as the time to meet compliance requirements comes to an end has further boosted the position of RLUSD. This has placed it strategically as a dependable substitute in this area.
The increase in RLUSD trading volume has pushed its market cap to $53 million. The most actively traded pair was RLUSD/USDC with trading volume of $21,000,000, then the ETH/RLUSD pairing, trading at $7.01 million. These numbers show an increased usage of the stablecoin as a compliant and stable means of payment for institutional and retail clients.
Ripple RLUSD’s Growing Utility Drives Institutional Interest
The fact that Ripple has incorporated RLUSD in its ecosystem and integrates it in On-Demand Liquidity (ODL) is the key reason behind the asset’s fast adoption.
With its 1:1 peg to the US Dollar, RLUSD is a relatively safe investment for investors who are aiming to avoid any shift in the market unpredictably. Further, Ripple’s compliance with the regulations has added credence to the stablecoin. Hence, it has contributed to RLUSD becoming more popular among European users.
Different trading platforms like the Bullish Exchange have reported high volumes in RLUSD trading pairs, reflecting growing institutional interest. These developments go to explain why the market has continued to call for RLUSD to meet these evolving needs effectively.
XRP Price Reacts to RLUSD Surge Amid
The implementation of RLUSD has showcased incredible value, nonetheless, XRP took a 4.5% hit in the last 24 hours trading at $2.08. The decline is however linked to market trends, while trading volume of XRP rose by 88% to $4.58 billion. Some critics argue that as the correlation between RLUSD and XRP is deepening, this will boost the use of XRP.
These fluctuations, shown by the $2.05 to $2.196 daily trading range, are an indication of active trading. Analysts remain optimistic about XRP price trajectory, with forecasts suggesting a rally to $6 in the coming months.
However, crypto analysts continue to emphasize XRP’s undervaluation despite its recent rally. Predictions range from targets of $8.40 to an ambitious $48 by 2025. Ripple’s large escrow holdings, containing approximately 40 billion XRP valued at $83 billion at current prices, play a crucial role in this valuation narrative.
Demand For RLUSD and XRP
The increasing demand for RLUSD and Ripple’s continued diversification into stablecoins as well as custody solutions for XRP also support the prospect of long-term XRP appreciation. Over time, analysts expect more investors’ confidence in both RLUSD and XRP depending on the changes in regulatory policies.
Further, analyst EGRAG Crypto supports the bullish thesis due to the potential of XRP repeating history. Similar to the prediction made before the 2017 rally, EGRAG believes that the cryptocurrency could increase by 4,770% in this market cycle and reach $27.
The trick lies in breaking above $2.65 – a threshold that points to the beginning of a persistent bull run. This technical level would indicate the start of investor confidence and increase the price acceleration.
However, a look at XRP price shows it has held well above key support levels indicating that there is still bullish sentiment in the market to spur a significant rally. Analysts emphasize the importance of consolidation above $2 to sustain upward momentum.
