In a significant update for the cryptocurrency community, Ripple has decided to postpone the launch of its highly anticipated RLUSD stablecoin. This decision comes as the company awaits the final approval from the New York Department of Financial Services (NYDFS). The official announcement was made via Ripple’s social media, stating that despite the ongoing speculation, the RLUSD stablecoin is not launching today. Ripple emphasized its commitment to aligning with NYDFS to ensure the product meets the highest regulatory standards. As the community eagerly awaits further updates, Ripple reassures its stakeholders of a launch in compliance with regulatory guidelines.
Understanding RLUSD: A U.S. Dollar-Backed Stablecoin
The RLUSD stablecoin is designed to maintain a 1:1 backing with the U.S. dollar. This stablecoin will be fully supported by U.S. dollar deposits, short-term U.S. government Treasury securities, and cash equivalents. Since early August, RLUSD has been undergoing beta testing on both the XRP Ledger (XRPL) and Ethereum mainnet. Ripple’s future plans include expanding RLUSD to new blockchains and decentralized finance (DeFi) protocols, enhancing its role within the Ripple ecosystem.
XRP Loses Its Position Amid Market Volatility
Recent developments have seen XRP, Ripple’s native cryptocurrency, experience significant market fluctuations. Following the announcement of the RLUSD delay, XRP’s price fell to $2.31 within a 24-hour period. This drop caused XRP to lose its status as the third largest cryptocurrency by market capitalization, with Tether reclaiming the position. Currently, XRP is trading at $2.39, reflecting a decrease of over 6% in the last day, and its market cap now stands at $135 billion, down by over 7%.
Increased Selling Pressure and Market Response
The postponement of RLUSD has added to the selling pressure on XRP, as market participants react to the unexpected delay. This has resulted in a noticeable decline in both price and trading volume, which fell from over $32 billion to $16 billion on December 4. The market appears to be in a cooling-off period, as traders assess the situation and reconsider their positions.
Bullish Sentiment Prevails Despite Recent Setbacks
Despite the recent downturn, there remains a bullish sentiment surrounding XRP. The cryptocurrency has witnessed a 25% decline from its year-to-date high, ending a significant rally that propelled it to levels last seen in 2018. Interestingly, this dip occurs as Bitcoin surpasses the historic $100,000 mark. Analysts suggest that if XRP’s price closes above $2.1793, it may trigger a rebound, with potential for further upside momentum.
Many analysts draw parallels between the current bullish cycle and previous ones in 2020 and 2017, predicting that the first major price correction, ranging from 15% to 30%, may not occur until Bitcoin reaches $135,000 or even $159,000. The broader market remains buoyant, with Bitcoin’s gains potentially reflecting on altcoins like XRP, leading to new price highs.
FAQs
Why did Ripple postpone the RLUSD stablecoin launch?
Ripple delayed the launch of RLUSD as it awaits final approval from the New York Department of Financial Services (NYDFS), ensuring compliance with regulatory standards.
How did the RLUSD launch delay affect XRP’s price?
The delay in RLUSD’s launch led to a rapid decline in XRP’s price, falling to $2.31 within 24 hours and marking a 6% decrease in value.
How does Bitcoin’s performance impact XRP?
Bitcoin’s recent surge past $100,000 has the potential to drive further gains for altcoins like XRP, continuing the prevailing bullish momentum in the market.
