RLUSD Vs USDT Trader Players: XRP Army Echoes “un-Tethering!”

Bittime - XRP reclaimed its position as the world's third largest digital asset by market capitalization, overtaking the stablecoin Tether (USDT) on Wednesday night. With XRP's market capitalization reaching $138.2 billion, while USDT stands at $137.1 billion, this shift shows that the crypto market is undergoing significant changes.

XRP's price surge above $2.40 also reflects the stabilization of Ripple's stablecoin, RLUSD, which is trading at around $1. In this context, many traders have started discussing the comparison between RLUSD and USDT, as well as its potential impact on the price of XRP.

Discussions among traders, especially XRP holders, have been abuzz with the term “un-Tethering.” This term refers to the growing concerns regarding the future of USDT in the European Union, especially after the enactment of the Markets in Crypto Assets Regulation (MiCA).

With MiCA coming into full effect on December 30, 2024, many traders are concerned that USDT may not be able to meet the new regulatory requirements. This creates an opportunity for RLUSD to take USDT's place as a more stable and regulated stablecoin.

Read also: RLUSD: The Positive Impact of Ripple's Stablecoin on XRP

RLUSD: A Promising Alternative

Since its launch, RLUSD has caught the attention of many traders thanks to its regulated status under the New York State Department of Financial Services (NYDFS).

With 1:1 backing from US Dollar reserves and monthly audits by a third party, RLUSD offers transparency and trust that is often questioned with USDT. In this context, RLUSD becomes an attractive alternative for traders seeking stability in a volatile market.

RLUSD's presence in the market also benefits the XRP ecosystem. With Ripple being the largest XRP token holder, wider adoption of RLUSD is expected to increase demand for XRP. This creates a synergy between the two digital assets, where the growth of RLUSD can contribute to the price rise of XRP.

Excitement Among the XRP Community

The XRP community is excited about the potential of RLUSD. Many traders believe that RLUSD could take the place of USDT and become the new standard in the world of stablecoins. One interesting initiative is the Rewards Center program launched by Uphold, where RLUSD holders can earn 5% rewards.

This provides an additional incentive for traders to switch from USDT to RLUSD, further strengthening RLUSD's position in the market.

This excitement also reflects the community's desire to see XRP and RLUSD grow together. With increased scrutiny on USDT and questions regarding the transparency of its reserves, many traders are starting to consider RLUSD as a safer and more regular option.

Also read: Ripple USD: The Latest RLUSD Stablecoin Development

Future Outlook: RLUSD Vs USDT

With all these developments, the comparison between RLUSD and USDT is becoming increasingly relevant. If RLUSD can continue to attract attention and adoption in the market, there is a high probability that the price of XRP will continue to rise.

On the other hand, if USDT fails to meet the new regulatory requirements, it could lead to a decline in confidence among traders and investors.

In this context, the XRP Army is touting “un-Tethering” as a symbol of hope for a more stable and regulated future in the crypto market. With support from the community and positive developments around RLUSD, XRP has the potential to surpass BTC and ETH, cementing its position as one of the top digital assets in the market.

FAQ

What is RLUSD and how is it different from USDT?

RLUSD is a stablecoin regulated under the New York State Department of Financial Services (NYDFS) and backed 1:1 by US Dollar reserves. Meanwhile, USDT is an older stablecoin and has faced questions regarding the transparency of its reserves. RLUSD offers more transparency and trust than USDT.

Why is the XRP community clamoring for “un-Tethering”?

The XRP community is touting “un-Tethering” in response to concerns regarding the future of USDT in the European Union, especially after the introduction of the Markets in Crypto Assets Regulation (MiCA). Many traders believe that RLUSD could take USDT's place as a more stable and regular stablecoin.

What are the benefits of using RLUSD over USDT?

The benefits of using RLUSD include stricter regulatory compliance, better transparency, and support from US Dollar reserves. Additionally, RLUSD undergoes monthly audits by third parties, giving users more confidence compared to USDT which has faced criticism regarding transparency and reserves.

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References

latintimes.com, $XRP Returns To Top 3 As $RLUSD Trades Higher Than $USDT - Effect Of Upcoming 'Un-Tethering'?, accessed on January 3, 2025.

timestabloid.com, Something Big Starting For XRP and RLUSD On January 1, 2025? Uphold Just Sparked Reactions, accessed on January 3, 2025.

Author: AWW