- By integrating the price feeds of Chainlink, Ripple ensures that the value of RLUSD shows real-world market conditions.
- On January 6, the open interest of XRP saw a spike, going up by more than 40% from 1.09 billion XRP to 1.53 billion XRP.
- The products also recorded $5.7 million in net inflows, the highest across all virtual assets investment products.
Ripple has recently taken a major step by integrating Chainlink’s blockchain technology to provide genuine pricing data for its RLUSD stablecoin. RLUSD is a USD-supported virtual currency that is developed for secure, quick payments and is backed on both the Ledger and Ethereum blockchains.
After integrating the platforms, Ripple targets intensifying RLUD’s utility across decentralized finance applications. On the other hand, DeFi is a blockchain-based financial service that terminates mediators like banks.
The application depends heavily on smart contracts, and automated programs that perform transactions depend on preset rules. Stablecoins such as RLUSD are critical to DeFi as they provide price stability by being pegged to conventional currencies such as the US dollar.
Why Chainlink?
For RLUSD to be worthwhile in DeFi applications, like lending or trading, precise pricing data is required. So, the need for Chainlink takes effect. Chainlink is directed by a decentralized network of oracles, systems that associate blockchain applications to real-world data to offer up-to-date and invulnerable data.
By integrating the price feeds of Chainlink, Ripple ensures that the value of RLUSD shows real-world market conditions. The system collects data from various trading environments, cutting down imprecision and reducing the risk of exploitation. Ripple chose Chainlink as a result of its confirmed security, decentralized network, and robust fame for reliability.
A dive into XRP’s movement
At the time of writing, the price of XRP was hovering around $2.29 and is 2.67% down in the last 24 hours.
The overall market capitalization is pushed to $131.13 billion. On January 6, the open interest of XRP saw a spike, going up by more than 40% from 1.09 billion XRP to 1.53 billion XRP. Open interest is referred to as the overall number of unsettled contracts in a derivatives market.
The latest hike in open interest amid flat prices shows the inflow of new liquidity to skyrocket XRP’s bullish bias, mainly with Donald Trump’s forthcoming commencement on January 20. At the same time, prices sometimes are inclined to shift in the opposite direction when bullish expectations are very high.
On the other hand, the CoinShares data reveals that XRP investment products listed positive flows last week, as it was the sole prominent crypto asset without any negative flow. The products also recorded $5.7 million in net inflows, the highest across all virtual assets investment products.
