Ripple’s USD Stablecoin Launch Propels XRP Price Up by 3%
  • Ripple Labs’ announcement of plans to introduce a native stablecoin to the XRP ledger is providing a major boost to the XRP price rise.
  • Within 24 hours of news of the stablecoin launch, XRP open interest jumped from $899 million to $981.2 million, representing a 9% increase.

XRP price has been trending upward in the past two days, 3% And the market cap skyrocketed to $32.5 billion, close to $0.60. Also, as reported by Crypto News Flash, the recent rise in XRP price comes after Ripple Labs announced the launch of its native stablecoin.

Ripple Research Institute announced on April 4th its intention to introduce its own stablecoin to the XRP ledger blockchain network. The next Ripple stablecoin, scheduled to be released later this year, will maintain a 1:1 peg to the US dollar. The company said it will be supported by cash equivalents such as U.S. dollar deposits, U.S. government bonds and other low-risk investments.

The current size of the global stablecoin market is $150 billion, and Tether’s USDT is valued at over $100 billion, accounting for the majority of 69.5%. Interestingly, the size of the stablecoin market is predicted to grow 20 times to $2.8 trillion by 2030. Due to this huge market opportunity, the launch of Ripple’s native stablecoin comes at a very important time. Ripple President Monica Long said:

XRP Ledger-specific features such as decentralized exchanges and automated market makers are designed to leverage XRP as a bridge currency. Introducing a trusted stablecoin to XRPL is expected to accelerate adoption and development and strengthen the entire ecosystem.

XRP open interest and price action

Preliminary on-chain activity detected on April 4th indicates that XRP holders are strategically positioning themselves in anticipation of favorable price effects following the stablecoin launch announcement.

Within 24 hours of announcing the launch of Ripple’s proposed stablecoin, XRP open interest, which represents total investment in the futures derivatives market, jumped from $899 million to $981.2 million.

This $82 million increase in open interest represents a significant 9% increase and exceeds the 3% increase in XRP price observed within the daily time frame. A significant increase in open interest means an influx of new money into the market and indicates that investors are opening new positions at a faster pace than they are closing existing positions.

Within just 24 hours of Ripple’s stablecoin launch announcement, XRP witnessed a surge in new capital inflows of over $82 million, even as the spot price fell below $0.60. If this trend continues and the market continues to deepen due to increased liquidity, a potential breakout for XRP price towards $0.70 could be on the horizon.

However, for this optimistic XRP price prediction to be confirmed, XRP price will need to regain the critical $0.65 level.

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