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Ripple’s launch of a new stablecoin has sparked curiosity about its potential to bridge the gap between XRP’s fanbase and Ripple’s struggle to attract enterprise clients. The threat of a $2 Billion fine from the SEC is looming on Ripple’s head and this sudden launch is indeed a desperate move to arrange the financials before the deadline. Despite stiff competition in the stablecoin market, Ripple’s CEO, Brad Garlinghouse, remains optimistic, foreseeing changes in the market’s landscape based on size.
As Ripple faces these issues, many community members are looking for an answer to why such a decision is taken, is XRP dying?
Let’s find out!
Ripple’s Stablecoin Launch Impact on XRP
Ripple’s plan to launch a stablecoin tied to the U.S. dollar on Ethereum and XRP Ledger caused XRP’s price to jump by 10% in just one hour. However, the introduction of Ripple’s stablecoin has sparked a global debate about its potential impact on both Ripple and its native token, XRP. Ripple’s CTO, David Schwartz, believes that the stablecoin could breathe new life into the XRP Ledger’s decentralized finance (DeFi) ecosystem, which has thus far seen subdued usage compared to other chains despite having a decentralized exchange (DEX) in place.
One key area of interest is how the stablecoin will affect XRP. Despite a court ruling affirming XRP’s non-security status, its price has remained stagnant, partly due to ongoing legal uncertainties surrounding Ripple. However, introducing a stablecoin could change this narrative by increasing XRP’s utility and liquidity. He also mentioned that this potential boost in XRP’s profile could, in turn, increase investor confidence and possibly drive its price upwards.
Currently, XRP is trading at $0.59, experiencing a modest 3% increase over the last 24 hours. Despite this uptick, its weekly chart shows a slight decline of over 3% over the past seven days. As Ripple’s stablecoin plans unfold, market participants will closely monitor XRP’s performance, anticipating how it may be influenced by the introduction of this new cryptocurrency product.