Ripple USD: A Slow Start for the New Stablecoin

Ripple USD (RLUSD), the stablecoin issued by Ripple Labs—the company behind XRP—was launched with high expectations on December 17. The news initially caused a surge in XRP’s price, both before and immediately after the launch. However, nearly ten days later, RLUSD has struggled to gain traction in the market.

A Slow Start

Currently, RLUSD ranks 35th among stablecoins by market capitalization, according to trackers like CoinGecko and CoinMarketCap. Notably, it falls below Terra USD (UST), the collapsed Terra-Luna stablecoin that lost its peg to the US dollar and now trades at just $0.01.

For those anticipating rapid adoption of RLUSD, these rankings are disappointing. The primary reason for its sluggish growth appears to be the limited number of exchanges where RLUSD is listed. As of now, it is available on platforms like Bitso, Mercado Bitcoin, and Bullish, but it has yet to reach major exchanges.

Expansion Plans

Ripple Labs has stated that it is working on expanding RLUSD’s availability to larger platforms, including Bitstamp. However, the key to achieving widespread adoption will likely involve listings on leading global exchanges such as Binance and Coinbase. Given that RLUSD is a regulated product with state approvals, Ripple Labs should face minimal barriers in securing these critical listings.

The Ripple Effect on XRP

The success of RLUSD could have significant implications for XRP, Ripple’s native cryptocurrency. Historically, positive developments related to Ripple Labs tend to boost XRP’s price, much like how favorable news can increase the value of a company’s stock.

At present, XRP appears poised for a breakout, with technical analysis indicating a bullish pennant formation. This pattern often suggests a continuation of an uptrend, hinting at potential gains for XRP in the near future.

While RLUSD’s journey is off to a modest start, its performance in the coming months will be closely watched, not only for its own market position but also for its impact on the broader Ripple ecosystem.