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XRP whales have been in immediate buying mode with blockchain payments company Ripple officially on the way Fired Its dollar-backed stablecoin, RLUSD, will be traded on several global cryptocurrency exchanges on Tuesday. The stablecoin is now available for trading on Bitso, Uphold, CoinMENA, MoonPay and Archax, with additional listings expected soon.
Ripple RLUSD stablecoin launches amid price volatility
RLUSD is designed to maintain a stable value in line with the US dollar and is compatible with both the Ethereum (ETH) blockchain and… XRP Ledger (XRPL), the latter being developed by Ripple Labs alongside XRP.
However, shortly after its launch, RLUSD saw some volatility, trading at $1.50 on MoonPay early Tuesday — an unexpected premium above the intended value, Fortune reported. certain.
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David Schwartz, Ripple’s chief technology officer (CTO), predicted potential price discrepancies in a previous post on X. He explained that an early shortage in supply could lead to RLUSD trading at a premium until the market stabilizes.
“But rest assured, the price will return to closer to $1 once supply stabilizes,” Schwartz reassured investors. “If that doesn’t happen, something is very wrong.”
Interestingly, RLUSD’s inflated price of $1.50 is a fraction of what it was previously listed at on Xaman, which is Crypto wallet For XRP ledger. In the run-up to the launch, Ripple backers made offers to buy initial RLUSD tokens, with some investors willing to pay as much as 511 XRP – roughly $1,300 per token.
XRP retreats to $2.52 after initial rally
As the launch of RLUSD led to increased activity on the XRP Ledger, interest in XRP itself increased. Token, used for settlement Transaction fees On the blockchain, it saw a 6% rise in value on Monday, peaking at $2.71. However, it has since rebounded to the $2.52 level.
Cryptocurrency analyst Ali Martinez I mentioned Large investors, or “whales,” bought an additional 30 million XRP before the launch, boosting its price. In contrast, Bitcoin (BTC) and Ethereum saw declines of 2.6% and 4.6%, respectively, in the same time frame.
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The launch of RLUSD comes recently Regulatory approval From the New York Department of Financial Services, allowing Ripple to strengthen its presence in the payment network sector for cross-border transactions.
Jack MacDonald, Senior Vice President of Stablecoins at Ripple, emphasized the potential for institutional adoption, saying: “The stablecoin market is going through the next growth spurt where there will be more institutional adoption based on institutional use cases.” He highlighted stablecoins as a “killer app” for global payments.
While initial interest in RLUSD is largely driven by retail investors, Ripple aims to integrate the stablecoin into its currency. Payments business To facilitate international transactions for global banks and institutional partners starting next year.
Featured image of DALL-E, chart from TradingView.com