XRP, the sixth biggest crypto gains speed as Ripple announced launching its own stablecoin pegged 1:1 to the USD on the XRP Ledger. It added that it will also be deployed on the Ethereum blockchain. XRP price jumped by almost 5% since the news broke out.
Will XRP break $1?
Ripple’s native crypto has been dealing with regulatory challenges pushed by the US Securities and Exchange Commission (SEC). XRP price is down by 4% on the year to date (YTD) basis, while, it is down by more than 10% in the last 30 days. This shows the level of selling pressure XRP is dealing with.
XRP is trading at an average price of $0.59, at the press time. Its 24 hour trading volume is up by a whopping 32% to stand at $2.15 billion. Despite facing a US SEC lawsuit, XRP is holding a market cap of $32.6 billion.
Ripple in a post mentioned that the stablecoin market is booming and it stands at around $150 billion today. However, it is projected to soar past $2.8 trillion by 2028, as per Ripple’s calculation. It added that there is a demand for trust, stability, and utility.
Top management on the big launch
Brad Garlinghouse, CEO of Ripple Labs, in a post stated that launching a stablecoin was a natural step for Ripple. He added that they trying to bridge the gap between traditional finance and crypto. Garlinghouse highlighted that they are now holding huge years of experience with a regulatory footprint. However, the blockchain firm holds a strong balance sheet with a network with global payout coverage.
David Schwartz, Chief Technology Officer at Ripple, expressed enthusiasm over the launch of stablecoin. He stated that a high quality USD stablecoin on the XRP ledger (XRPL) and that with a decentralized exchange. He added that the XRPL has features like issued currencies, and auto-bridging, and the AMM will be a game-changer for users and devs.
Ripple’s stablecoin will have direct competition with top players like Tether and Circle, who issue the world’s biggest dollar pegged coins. Tether’s USDT is holding a market cap of around $106 billion, while, Circle’s USDC boasts a market cap of $32.9 billion.
DAI is the other major stablecoin in the league as it is holding a market cap of more than $5.3 billion.
