Yesterday, Ripple received the approval of the New York Department of Financial Services to launch its stablecoin, RLUSD. The development has triggered extreme excitement among XRP enthusiasts. In the last 24 hours alone, the price of XRP has climbed by over 5.4%. However, in a recent post on X, Vincent Van Code states that the real growth is yet to come. Why could the coming months be crucial for XRP? Let’s explore!
XRP’s Price Surge Post-RLUSD Approval
At the start of this month, the XRP price was at $1.95. On December 2, it touched a peak of $2.7239. Between December 3 and 5, the market showed a serious correction of 17.56%- the largest since November 5. The market has not yet recovered from the correction.
Though, between December 6 and 7, XRP buyers pushed the price upwards nearly 16.34%, on December 9, XRP sellers regained control, pulling the market down almost 15.14%. Nonetheless, since December 10, the XRP market has consistently surged, marking at least 10.05% growth.
The recent growth coincides with the New York authority’s approval for Ripple’s RLUSD. However, Van Code asserts that the current XRP growth does not have the support of fundamentals and the real growth will happen when Automated Market Makers and Liquidity Pools are set up.
AMM/LP Setup and Future Growth
Van Code claims that the AMM/LP setup will allow users to earn 5% APY on-chain without counterparty risks. The expert forecasts that the setup will drive huge money inflows into XRP Ledger.
RLUSD Staking and Increased XRP Utility
The expert notes that cryptocurrency exchanges will capitalise on RLUSD by offering staking options. Explaining the possibilities of earning returns and boosting XRP utility, the expert adds that the exchanges will lock XRP on the XRP Ledger. He also mentions that users may swap USDT for RLUSD, enabling the purchase of XRP and LP tokens.
Rising XRP Demand and Market Impacts
There is no doubt that any development in the usability of RLUSD will positively influence the demand for XRP. An increase in demand for XRP will reduce the supply of the token on exchanges. A reduction in supply will lead to an increase in the price of XRP.
The expert emphasises that Market Makers and price-suppressing bots may struggle with the rising demand of XRP.
Timeline of XRP’s Growth
Van Codes predicts that the XRP market may witness sustained growth at least until February, 2025.
In conclusion, RLUSD is not only boosting XRP’s price but could also transform its ecosystem. As demand rises and utility grows, XRP may see its strongest performance in years. The coming months are extremely crucial.
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