Ripple Labs Inc., a leading American blockchain payments firm, stirred market excitement with the launch of its RLUSD stablecoin on global exchanges. Despite initial projections of stability, the token’s 24-hour performance displayed noticeable fluctuations. Although intense volatility was absent, price movements were less stable than expected.
Designed to maintain a 1:1 peg with the U.S. dollar, the RLUSD stablecoin fell slightly short of this goal. According to data from XPMarket, RLUSD was trading at $0.99 at the time of writing. This deviation raised questions about the stability of the coin just a day after its launch.
Initial Price Surpasses $1 Mark
At launch on December 17, RLUSD’s price started above $1.10. Ripple’s CTO, David Schwartz, had cautioned potential buyers against panic buying, forecasting possible instability. His predictions proved accurate as the token’s value shifted over the next 24 hours. Despite this, key metrics related to market performance showed positive growth.
Related article: Ripple Achieves NYDFS Approval for RLUSD Stablecoin
The stablecoin’s fully diluted market cap increased from $13 million at launch to $15.1 million at the time of writing. Similarly, the market cap saw an increase from $1.3 million to $2.9 million. The rise in holder numbers was even more dramatic. The number of RLUSD holders grew from fewer than 1,000 at launch to over 5,800 within 24 hours. This surge followed extensive promotional efforts before the token’s debut on prominent exchanges such as Moonpay, Bitso, and Uphold.
Ripple’s Broader Strategy for XRP and RLUSD
Ripple’s leadership views RLUSD’s launch as a pivotal step for the broader adoption of XRP. By serving as a liquidity layer for XRP, RLUSD aims to boost the usability of both assets on Automated Market Maker (AMM) protocols running on the XRP Ledger.
Related article: Ripple Advances RLUSD Stablecoin with 13 Million Tokens Minted
Executives believe this integration will attract more users and drive increased activity on the network. Ripple’s ambitions extend beyond boosting XRP’s utility. The firm aims to become a dominant player in the blockchain payments sector. The RLUSD stablecoin, working alongside XRP, positions Ripple to challenge established competitors like Tether (USDT) and Circle (USDC).
By fostering a complementary relationship between XRP and RLUSD, Ripple hopes to redefine industry standards and claim a larger share of the stablecoin market.
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