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RLUSD, Ripple’s stablecoin, recorded a trading volume of $35.073 million, representing a 180% increase in the last 24 hours. This increase can mainly be attributed to the challenges faced by Tether USDT in complying with MiCA regulatory requirements of the European Union. This can lead to an increase in the price of XRP.
Doubt surrounding USDT as time to meet compliance requirements is running out has further strengthened RLUSD’s position. This strategically positioned it as a reliable substitute in this area.
The increase in RLUSD trading volume pushed its market capitalization to $53 million. The most actively traded pair was RLUSD/USDC with a trading volume of USD 21,000,000, followed by the ETH/RLUSD pair, with USD 7.01 million traded. These figures show the increased use of stablecoins as a compliant and stable means of payment for institutional and retail clients.
Growing Ripple RLUSD utility is fueling institutional interest
The fact that Ripple has included RLUSD in its ecosystem and integrated it into on-demand liquidity (ODL) is a key reason for the rapid adoption of the asset.
With its 1:1 relationship to the US dollar, RLUSD is a relatively safe investment for investors who want to avoid any unpredictable changes in the market. Furthermore, Ripple’s regulatory compliance has added credibility to the stablecoin. Therefore, it contributed to making RLUSD more popular among European users.
Various trading platforms such as Bullish Exchange have reported high volumes in RLUSD trading pairs, reflecting growing institutional interest. This development explains why the market has continued to demand RLUSD to effectively meet these growing needs.
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XRP price reacts to RLUSD spike mid
The implementation of RLUSD has shown incredible value, regardless, XRP has seen a 4.5% drop in the last 24 hours trading at $2.08. However, the decline is related to market trends, while XRP trading volume increased by 88% to $4.58 billion. Some critics argue that as the correlation between RLUSD and XRP deepens, it will drive the use of XRP.
These fluctuations, shown by the daily trading range of $2.05 to $2.196, are an indication of active trading. Analysts remain bullish on XRP’s price trajectory, with forecasts suggesting a rise to $6 in the coming months.
However, cryptoanalysts continue to highlight XRP’s undervalue despite its recent surge. Predictions range from targets of $8.40 to an ambitious $48 by 2025. Ripple’s large escrow fund, which holds approximately 40 billion XRP valued at $83 billion at current prices, plays a key role in this valuation story.
Demand for RLUSD and XRP
Increasing demand for RLUSD and Ripple’s continued diversification into stablecoins, as well as custodial solutions for XRP, also support prospects for long-term XRP appreciation. Over time, analysts expect more investor confidence in RLUSD and XRP depending on changes in regulatory policies.
Furthermore, analyst EGRAG Crypto supports the bullish thesis due to the possibility of a repeat of XRP history. Similar to the prediction before the 2017 rally, EGRAG believes that the cryptocurrency could rise by 4,770% in this market cycle to reach $27.
The trick lies in breaking above $2.65 – the threshold that indicates the beginning of a persistent bull run. This technical level would indicate the beginning of investor confidence and increase price acceleration.
However, a look at the price of XRP shows that it has held well above key support levels, indicating that there is still market sentiment to drive significant upside. Analysts stress the importance of consolidation above $2 in order to maintain the upward momentum.
