Whales Acquire 30 Million XRP Following Ripple’s RLUSD Stablecoin Launch
XRP whales have increased their purchases as Ripple launched its dollar-backed stablecoin, RLUSD, on multiple global crypto exchanges including Bitso, Uphold, CoinMENA, MoonPay, and Archax. Further listings are anticipated.
Ripple RLUSD Stablecoin Launches Amid Price Volatility
RLUSD aims to maintain a stable value equivalent to the US dollar and is compatible with both the Ethereum blockchain and the XRP Ledger. Post-launch, RLUSD traded at $1.50 on MoonPay, exceeding its intended value, as confirmed by Fortune Magazine.
David Schwartz, Ripple's Chief Technology Officer, had foreseen potential price fluctuations due to early supply shortages. He stated that RLUSD's price would stabilize close to $1 once supply normalizes, indicating that any sustained deviation would signify a serious issue.
RLUSD's inflated price of $1.50 contrasts sharply with pre-launch bids on Xaman, where some investors offered up to 511 XRP, approximately $1,300 per token.
XRP Retraces To $2.52 After Initial Spike
The launch of RLUSD has driven heightened activity on the XRP Ledger, increasing interest in XRP, which is used for transaction fees. XRP's value rose 6% on Monday, peaking at $2.71 before retracing to $2.52.
Crypto analyst Ali Martinez reported that large investors purchased an additional 30 million XRP prior to the launch, contributing to its price increase. In contrast, Bitcoin and Ethereum saw declines of 2.6% and 4.6%, respectively.
This launch follows recent regulatory approval from the New York Department of Financial Services, positioning Ripple to enhance its role in cross-border payment networks.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, noted the potential for institutional adoption, labeling stablecoins as a “killer app” for global payments. While initial interest in RLUSD is primarily from retail investors, Ripple plans to integrate the stablecoin into its payment solutions for global banks and institutional partners starting next year.
Featured image from DALL-E, chart from TradingView.com