Ripple (XRP) Fails to Rally Despite the Launch of RLUSD Stablecoin

The launch of Ripple's RLUSD stablecoin on Dec. 17 is yet to spark a significant rally for the price of XRP

Ripple’s RLUSD stablecoin finally hit the market on Dec. 17, but its launch has failed to ignite a price rally for XRP so far.

Here's what happened: The stablecoin, which received approval from New York regulators in December, marks a key development in the Ripple ecosystem. RLUSD is backed by a combination of cash reserves and short-term U.S. Treasury Bills, maintaining a strict 1:1 peg with the U.S. dollar and serving as a stable medium for large-scale transactions.

According to Tradingview data, XRP opened at a price of $2.4856 on Coinbase on Dec. 17. It is currently trading around $2.405, down about 4% since the RLUSD launch day.

See More: Best Stablecoins to Buy

Why It Matters: The introduction of RLUSD is set to bolster liquidity within the XRP ecosystem, enabling institutions to execute larger trades with less price impact. Transactions involving RLUSD will be settled on both the XRPL and XRP-EVM sidechain, driving up demand for XRP through transaction fees.

In an interview on Dec. 19, Ripple CEO Brad Gerlinghouse highlighted the potential of stablecoin regulation to position Ripple’s RLUSD stablecoin as a key driver in the next wave of XRP price appreciation.

While some optimistic forecasts anticipate XRP reaching $4.75 in the coming months, CTO David Schwartz cautioned ahead of the launch that RLUSD is “not an opportunity to get rich.” This statement may foreshadow the observed lack of a price surge.

Despite the lackluster price action, structural enhancements to XRP’s ecosystem—such as the reduced volatility and increased liquidity brought by RLUSD—may provide more lasting support for the token's price than previous rallies.