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In a recent video commentary, crypto influencer Levi discussed the upcoming RLUSD stablecoin from Ripple and its potential impact on XRP.
Levi suggested that the combination of new developments in regulatory clarity and the launch of RLUSD could propel XRP to higher prices, potentially leading to a price of $10 per coin.
Levi expressed his amazement at the developments surrounding XRP in recent times, noting a range of significant events. He highlighted the SEC’s recent opposition to its own chair, Gary Gensler, and the minting of RLUSD as important for Ripple and XRP.
Levi acknowledged that some viewers might find it confusing to see a connection between a stablecoin like RLUSD and XRP. However, he stressed that the relationship between the two assets would become clear.
The market commentator noted that RLUSD stablecoin represents one of the most important moves for Ripple and XRP in recent times. According to him, its launch would be beneficial for the XRPL ecosystem, positioning XRP to reach new price levels.
Regulatory Implications
Levi also discussed an important moment in the latest SEC Congressional hearing, where Rep. Patrick McHenry questioned SEC Commissioner Hester Peirce about the regulatory ambiguity surrounding crypto.
Peirce admitted that the SEC’s approach to cryptocurrency lacked precision and clarity, an acknowledgment that resonated strongly with Levi’s audience.
Levi suggested that Gensler’s career might be jeopardized by this regulatory mess. GOP presidential candidate Donald Trump has already promised to fire Gensler and Ripple CEO Garlinghouse believes Gensler could leave even if Kamala Harris wins.
According to Levi, Ripple has already taken advantage of the new developments in regulatory clarity by moving forward with RLUSD. Amid the beta testing phase, Ripple has minted millions of RLUSD, with its data added to CoinGecko.
RLUSD Market Potential and Its Impact on XRP
According to Levi, one of the most exciting aspects of RLUSD is its potential to tap into the growing stablecoin market, which currently holds hundreds of billions of dollars.
Stablecoins such as USDT and USDC have proven essential for liquidity in the crypto market, and Levi believes that RLUSD could capture a portion of that market. This would bring additional trading volume to the XRP Ledger, making it more attractive for DeFi applications.
Levi stressed that the introduction of RLUSD as a Ripple-backed stablecoin would boost XRP’s visibility and also attract institutional players. In the past, Ripple’s institutional partners relied on other stablecoins like USDT and USDC for transactions due to legal restrictions on XRP.
Now, with RLUSD, institutions can use a stablecoin built on Ripple’s own infrastructure, channeling more volume and liquidity through the XRP Ledger. Levi believes this shift could result in billions of dollars of daily trading volume over the next year, directly benefiting XRP.
XRP Path to $10
Levi went on to predict that the potential surge in activity on the XRP Ledger, possibly driven by RLUSD, could lead XRP to reach $10 per coin.
He pointed out that the stablecoin would be important in expanding XRP’s use cases, from payment services to liquidity solutions for smaller market cap crypto assets.
Monica Long, President of Ripple, also emphasized that while RLUSD and XRP serve different purposes in the payment ecosystem, both assets will complement each other, bringing more volume to the XRPL. Ripple CTO has also assured that RLUSD would not replace XRP.
However, despite his optimistic outlook for XRP, Levi remained cautious, suggesting that a market correction could be looming.
He noted that the market had seen strong gains, with some signs indicating a pullback might be imminent. Levi predicted that, while XRP could experience a correction in the short term, the long-term prospects look highly favorable.