KEY POINTS
- $XRP has been trending over the past few weeks after it finally broke $1
- The token overtook two long-time greats within a day: Solana and Tether
- Ripple is expected to launch its $RLUSD stablecoin upon approval by the NYDFS
- The #XRPArmy is also awaiting news on applications for $XRP ETFs
Ripple, the fintech firm overseeing the development of the XRP Ledger (XRPL), has gone through a roller coaster ride with the law since late 2020, but four years later, XRP broke the chains that bound it to the U.S. Securities and Exchange Commission's (SEC) grasp and is on its way to $3.
Since being sued by the SEC for allegedly violating securities laws by selling securities in the form of XRP, Ripple struggled to get the same attention it enjoyed in the early days of the XRP Ledger.
Along with Ripple's legal woes was the nosedive of XRP, shedding around half of its market value during its glory days. Fast forward to 2024, and Ripple is back in the spotlight as its new regulated stablecoin, RLUSD, is reportedly poised for approval by the New York Department of Financial Services (NYDFS) this week.
$XRP Breaks Through to Deliver Much-Awaited Relief
XRP first surged during the 2024 U.S. elections week. About a week later, it skyrocketed above $1, triggering renewed hope for what was once the world's second largest digital currency by market cap.
It has since breached $2 and is currently trading at around $2.60, less than a dollar away from its all-time high of $3.40, which it recorded early in 2018. The coin has retreated slightly in the last 24 hours but its 30-day chart is an undeniable beauty, having logged a stellar 416% spike.
The XRP Army, XRP token holders who never wavered even amid doubts from the broader crypto space after the asset plunged and struggled to rise above $1 in the last four years, have been celebrating nonstop. On X, the digital coin was a hot trend multiple times over the past few weeks.
Ripple Makes Waves Before $RLUSD Approval
Ripple's upcoming regulated, U.S. dollar-pegged stablecoin, RLUSD, has been gaining traction in the crypto space. The company announced its strategic partnerships with several major firms where RLUSD will be made available when it is approved.
Among Ripple's key partners for RLUSD's launch are Uphold, MoonPay, CoinMENA, Bitso, Bullish, Independent Reserve, and Bitstamp.
The RLUSD will also have a "powerhouse" advisory board that includes Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair and Vice Chairman of Partners Capital and former CENTRE Consortium CEO David Puth.
Introducing Ripple USD (RLUSD): A 1:1 USD-backed stablecoin, offering transparency and stability on the XRP Ledger and Ethereum. Coming later this year.
— Ripple (@Ripple) June 12, 2024
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Can $RLUSD Challenge $USDT?
The big issue that has hounded Tether over the years is whether its USDT stablecoin is truly regulated as it insists. Circle's USD Coin (USDC) answered the question, being under U.S. jurisdiction. Tether is based in off-shore banking tax haven British Virgin Islands.
Tether representatives and executives have said USDT is regulated, but it can be worth noting that cryptocurrency exchange giant OKX de-listed USDT pairs in Europe earlier this year, citing the necessity to "comply with regulations and uphold the security of our platform" ahead of the European Union's adoption of its stringent MiCA regulatory framework.
With RLUSD being a regulated stablecoin, it has the potential to challenge USDC and ultimately, USDT, as more people recognize the importance of compliance in the evolving regulatory environment.
$RLUSD to Affect $XRP Prices?
As soon as news about RLUSD's potential approval this week spread on social media, crypto users shared their thoughts on how the stablecoin's launch could affect the prices of XRP.
"$2 is nothing. Wait until the RLUSD stablecoin gains massive adoption," said crypto trader and YouTuber Myles G. Blockchain expert Max Avery noted that the Ripple stablecoin's adoption "signals XRPL's strength," and in turn, a strong XRP Ledger will boost market sentiment for the network's native cryptocurrency.
Aside from its upcoming RLUSD and continuing hype around XRP, Ripple's popularity in recent weeks was also buoyed by recent filings for XRP exchange-traded funds (ETFs), which could further drive the token's price once the funds are approved.
A Comeback Story for the Ages
XRP is now the world's third most valuable crypto asset after it overtook Solana (SOL) and USDT within hours apart on Sunday. As Ripple continues to grow confidence following the 2023 court ruling that XRP is not a security when it's sold on exchanges, the optimism may further catapult the altcoin's price.
Ripple defied the SEC as it fought the Wall Street regulator for four years. At the time of the court ruling, Ripple noted how it was "the first industry win against the SEC, and sets the precedent for other crypto assets, tokens and securities regulation in the United States."
With Ripple and other crypto-associated firms set to welcome the entry of a new administration that has promised to support the industry, and the upcoming exit of SEC Chair Gary Gensler, the company is hopeful that the many headwinds in the past four years will finally turn into tailwinds.
