Ripple has recently achieved a significant milestone by securing approval from the New York Department of Financial Services to launch its stablecoin, RLUSD. This development has sent ripples of enthusiasm throughout the XRP community, resulting in a notable surge in XRP’s price by over 5.4% within just 24 hours. However, according to Vincent Van Code, a prominent voice in the crypto space, the true potential of XRP’s growth is yet to unfold. In this article, we delve into why the forthcoming months could be pivotal for XRP’s journey.
XRP’s Price Surge Following RLUSD Approval
The month began with XRP priced at $1.95, and by December 2nd, it had reached a high of $2.7239. However, between December 3rd and 5th, a significant market correction of 17.56% occurred, marking the largest correction since early November. Despite this setback, from December 6th to 7th, XRP buyers managed to drive the price upwards by approximately 16.34%. Unfortunately, by December 9th, sellers had regained control, causing a nearly 15.14% decline. Nevertheless, since December 10th, XRP has shown a consistent upward trajectory, achieving at least a 10.05% growth.
This recent growth appears to be aligned with Ripple’s RLUSD approval by New York authorities. Yet, Van Code suggests that this growth is not yet supported by underlying fundamentals. He anticipates real growth to ensue once Automated Market Makers (AMMs) and Liquidity Pools (LPs) are established.
The Role of AMM/LP Setup in XRP’s Future Growth
Van Code envisions the setup of AMMs and LPs as a catalyst for XRP’s future growth. This configuration is expected to provide users with the opportunity to earn 5% APY on-chain, eliminating counterparty risks. The expert predicts a substantial influx of capital into the XRP Ledger, driven by these advancements.
RLUSD Staking and Enhanced XRP Utility
Cryptocurrency exchanges are likely to leverage RLUSD by introducing staking options. By offering returns and amplifying XRP’s utility, these exchanges may lock XRP on the XRP Ledger, facilitating activities like swapping USDT for RLUSD to acquire XRP and LP tokens. Such developments could significantly enhance XRP’s market position and utility.
Increasing XRP Demand and Its Market Implications
As RLUSD becomes more usable, it is anticipated to positively affect XRP demand. An uptick in demand typically leads to a reduced supply of XRP on exchanges, which, in turn, could drive up XRP’s price. Van Code highlights that market makers and price-suppressing bots might face challenges in coping with the escalating demand for XRP.
Forecasting XRP’s Growth Trajectory
Van Code foresees a sustained growth period for the XRP market, potentially extending until February 2025. In summary, RLUSD is not only contributing to XRP’s price increase but also holds the promise of transforming its ecosystem. As demand intensifies and utility expands, XRP could experience its most robust performance in years. The upcoming months are indeed critical for XRP’s future.
