Ripple RLUSD: Stablecoin Launch Postponed, XRP Drops to 4th Position

Bittime -  On December 5, 2024, the price of Ripple's XRP token experienced a sharp decline of up to 6%, falling from $2.68 to $2.3574. This decline knocked XRP out of third place as the largest cryptocurrency, which is now occupied by Tether (USDT) with a market capitalization of $135.8 billion.

You must be wondering, what caused the price of XRP to drop drastically? Is this a sign of something bigger to happen in the world of cryptocurrency? Let's dig deeper!

Causes of RLUSD Launch Delay

Ripple revealed that the launch of its RLUSD stablecoin had to be postponed because it was still waiting for approval from the New York State Department of Financial Services (NYDFS). Although many parties hope that the launch of RLUSD will take place soon, Ripple confirmed that they are working with the NYDFS to ensure that all regulatory procedures run smoothly.

"Despite speculation, RLUSD will not launch today. We are working with NYDFS to get final approval and will provide further information soon," said Ripple via its official Twitter on December 4, 2024.

The decision to delay the launch of RLUSD was to ensure compliance with regulations, but this created uncertainty in the market, which had a direct impact on the price of XRP.

Also read: Ripple's RLUSD Stablecoin Has Been Approved by New York Regulators

Decline in XRP Trading Volume

After the announcement, XRP trading volume dropped drastically. Previously, XRP trading volume reached $32 billion, but after the delay, the volume plunged to just $16 billion. Overall, XRP trading volume in the last 24 hours decreased by almost 40%, indicating increased selling pressure from investors.

It's not just XRP that is affected. The stablecoin market also saw a significant surge, with stablecoin volume up 26.88% in the last 24 hours, reaching $327.85 billion. This change also affects the dynamics of the cryptocurrency market as a whole.

Hope for XRP Recovery

Despite XRP's decline, some analysts remain optimistic. Market commentator @egragcrypto thinks that the price of XRP will not fall below $2 again. "XRP will almost certainly not fall below $2 again," he said. This gives hope that XRP can recover soon despite the current pressure.

Also read: RLUSD Stablecoin Launching, Still Waiting for Final Decision!

Ripple and the Legal Case with the SEC

In addition to the RLUSD issue, Ripple is also battling a lengthy legal case with the US Securities and Exchange Commission (SEC). The good news is that Gary Gensler, the current chairman of the SEC, will step down in January 2025, and Paul Atkins, who is expected to replace him, is known as a supporter of innovative financial technology. This change gives hope to Ripple, which could benefit from friendlier policies towards cryptocurrencies.

Conclusion

Of course, the future of XRP is still full of question marks. However, major changes in the regulatory world could bring new hope for Ripple. So, are you ready to welcome a potential XRP revival, or do you see this as a warning to be careful? The world of cryptocurrency is full of surprises, and sometimes, a bright future comes after a storm. Don't miss the next developments!

Also read: When Will Ripple's RLUSD Launch? This is the leaked information

FAQ Ripple USD (RLUSD)

What is Ripple USD (RLUSD)?

Ripple USD (RLUSD) is a stablecoin issued by Standard Custody & Trust Company (SCTC), a subsidiary of Ripple. This stablecoin is designed to maintain a stable value, equal to 1 US dollar, and is fully backed by cash reserves and cash equivalent assets.

On which blockchains is Ripple USD available?

Ripple USD is available on two major blockchains, namely XRP Ledger and Ethereum. This allows Ripple USD to be accessed by a wide range of users, both application developers and institutions.

How to ensure Ripple USD is trustworthy?

Ripple USD is secured by cash reserves and low-risk assets, which are regularly audited by leading accounting firms every month. This audit process ensures that reserves supporting Ripple USD are always sufficient and well managed.
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Reference

Aki, Jimmy, XRP Falls from 3rd Largest Crypto Spot Amid Ripple’s Delay of RLUSD Stablecoin Launch, accessed December 6, 2024.

Coin Market Cap, Today's Cryptocurrency Prices by Market Capitalization, accessed December 6, 2024.

Author: MF