In a significant development within the cryptocurrency landscape, Ripple has announced a delay in the launch of its much-anticipated RLUSD stablecoin. The company awaits the final approval from the New York Department of Financial Services (NYDFS) before proceeding with the launch. Ripple communicated this postponement in an official post on X, stating, “Despite some speculation, $RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.”
Ripple emphasized its dedication to regulatory compliance, highlighting its commitment to launching under the supervision of NYDFS and maintaining the highest standards in regulatory practices. The company reassured its community that updates would be provided as soon as they become available.
XRP Faces Market Volatility
The delay in the RLUSD launch has had immediate repercussions in the cryptocurrency market, particularly affecting XRP, Ripple’s native digital asset. XRP, which recently experienced a surge amidst a broader altcoin rally, saw its price drop significantly following the announcement. Within 24 hours, XRP’s value dipped to $2.31, resulting in the loss of its position as the third largest cryptocurrency by market capitalization. This market shift allowed Tether to reclaim its spot.
Currently, XRP is trading at $2.39, marking a decrease of over 6% in the last 24 hours. Its market capitalization has also taken a hit, standing at $135 billion, which is a decline of over 7% in the past day. Despite these challenges, XRP continues to maintain a lead over other cryptocurrencies, such as Solana (SOL) and Binance Coin (BNB), which recently achieved an all-time high.
Market Dynamics: Increased Selling Pressure
The postponement of the RLUSD launch has led to increased volatility in the cryptocurrency market, contributing to a rise in selling pressure. This heightened activity has resulted in a substantial decrease in both price and trading volume. The market witnessed a drop from over $32 billion to $16 billion on December 4, indicating a cooling-off period as investors reassess their positions.
RLUSD, designed as a 1:1 U.S. dollar-backed stablecoin, is fully supported by U.S. dollar deposits, short-term U.S. government Treasury securities, and cash equivalents. Since early August, the RLUSD stablecoin has been undergoing beta testing on the XRP Ledger (XRPL) and the Ethereum mainnet. Ripple has strategic plans to gradually expand RLUSD’s reach, integrating it with new blockchains and decentralized finance (DeFi) protocols. The RLUSD stablecoin is poised to play a pivotal role in enhancing the Ripple ecosystem.
Stay Informed with Ripple’s Latest Updates
As the cryptocurrency market continues to evolve, staying informed is crucial for investors and enthusiasts alike. Follow us for more inspiring posts and stories that delve into the dynamic world of digital currencies and blockchain technology.
