Ripple stablecoin should benefit from XRP as it uses the latter for gas: crypto analyst

VaselineSeptember 10, 2024

0 3 minutes read

Ripple stablecoin should benefit from XRP as it uses the latter for gas: crypto analyst

Ripple stablecoin is gearing up for launch in the next few weeks, according to CEO Brad Garlinghouse.
RLUSD could benefit XRP through stable gas trading activity, analyst says.
XRP is trading at $0.53, correcting slightly on Tuesday.

Ripple (XRP) recently announced the launch of its stablecoin project, Ripple USD (RLUSD). In an interview at Korea Blockchain Week in the first week of September, CEO Brad Garlinghouse said that the launch of the asset is a few weeks away.

XRP is changing hands at $0.5387 and traders are eyeing a RLUSD release date.

Daily Market Reasons: Analyst Predicts XRP to Gain from RLUSD

The crypto analyst behind the X handle @Sentosumosaba said in a recent tweet that XRP Ledger’s native token stands to gain from the launch of the Ripple stablecoin.
The launch of RLUSD could benefit the altcoin as it would contribute to more activity on the ledger and XRP is the gas token.
The analyst expects XRP to gain due to higher demand for the altcoin.

Just like #ETH is used for gas, #XRP it is also used for gas (among other things). As the SEC Docs explained that ODL is price neutral, attract as much of the stablecoin gas trading activity as possible on #XRPL Mainnet possible. Millions please.
Any coin would be nice.

— Crypto Eri Carpe Diem (@sentosumosaba) September 8, 2024

While the on-demand liquidity provided to institutional investors does not typically influence the price, demand for the gas token could catalyze gains.
In a conversation on September 4 at Korea Blockchain Week, Brad Garlinghouse said that the launch of the Ripple stablecoin is just weeks away.
CTO David Schwartz informed crypto market participants in a recent tweet that RLUSD will be available exclusively to institutions, comparing it to Circle’s stablecoin USD Coin (USDC) and Tether’s USD Tether (USDT).

Technical Analysis: XRP corrects slightly on Tuesday

Ripple is currently in a downtrend. The altcoin could extend its losses to the September 6 low of $0.5026. This marks a 6.7% drop in XRP from its current price level. Moving Average Convergence Divergence (MACD), a momentum indicator, supports the bearish thesis.

Red histogram bars below the neutral line on the MACD indicate an underlying negative momentum in the XRP price.

XRP

XRP/USDT Daily Chart

A daily candlestick close above $0.6000, a key psychological level for XRP, could invalidate the bearish thesis. XRP could target the upper bound of the fair value gap (FVG) at $0.6217, the July 31 low for the altcoin.

Frequently asked questions about Bitcoin, altcoins, stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third parties to participate during financial transactions.

Altcoins are any cryptocurrency other than Bitcoin, but some consider Ethereum a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol, and therefore an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who want to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies in general are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. A high dominance of BTC usually occurs before and during a bull run, where investors resort to investing in relatively stable and high market capitalization cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means that investors move their capital and/or profits to altcoins in search of higher returns, which usually triggers a burst of altcoin rallies.

VaselineSeptember 10, 2024

0 3 minutes read