XRP Price On The Brink Of Another Breakout: The ‘Game-Changing Implications’ Of Ripple’s RLUSD Mints

XRP It’s been a huge boom In the last few weeks. Notably, the price of XRP recently rose to $2.81, its highest market value since January 2018, marking a significant milestone in its price trajectory. Interestingly, the rise in XRP prices has seen it outperform most cryptocurrencies and overtake BNB, Solana, and Tether USDT in the market cap ranking. With XRP price momentum building, there may be another tonic on the rise that would send it even higher. In particular, new speculation about Ripple using its collateral reserves to mint RLUSD is attracting attention across the cryptocurrency world.

RLUSD Mining Strategy and Ripple Guarantee

Rumors suggest that Ripple, the payment technology company behind XRP, may be planning to use collateralized XRP as a primary reserve for mining RLUSD. As the largest holder of XRP, Ripple currently holds approximately 37.24 billion tokens in escrow, with a select portion of 1 billion XRP tokens unlocked monthly.

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Meanwhile, RLUSD is Ripple’s new dollar-backed stablecoin that is expected to launch soon, with regulatory approval expected from the New York Department of Financial Services (NYDFS) on December 4.

according to Cryptographic analyzer On social media platform This approach could lead to two transformative outcomes for Ripple and the broader XRP Ledger (XRPL) ecosystem: a significant liquidity infusion and a controlled reduction in the total XRP supply. Moreover, it will provide utility for the locked XRP tokens held by Ripple.

Game-changing implications for the price of XRP and XRPL

With RLUSD, Ripple will enter the stablecoin market dominated by heavyweights such as USDT and USDC. However, given its long history in the cryptocurrency space, Ripple may be well-positioned to compete with other stablecoins.

If RLUSD is widely adopted, there will be indirect demand for XRP, which will increase its utility. More demand for XRP in this context could positively impact its price. Additionally, the process of minting RLUSD may involve actively locking XRP tokens if they are used as collateral, reducing circulating supply and continuing to support price growth.

At the time of writing, XRP is trading at $2.74 and is currently up around 12% and 90% over the past 24 hours and seven days respectively. The surge comes after massive whale accumulation, with wallets holding between 1 million and 10 million XRP combined over 679.1 million tokens in three weeks. According to data from On-chain analytics company Santiment.

Interestingly, this backlog is currently estimated at $1.66 billion. This cumulative trend could continue to push the price of XRP onto a positive path, with the next target Being broken above $3 And the subsequent breakout to a new all-time high above $3.40.

Featured image created with Dall.E, chart from Tradingview.com