The XRP token has emerged as one of the top performers in the cryptocurrency market, recording a notable 12.5% price increase over the past 24 hours. According to data from CoinGecko, XRP ranks third in performance among the top 100 cryptocurrencies by market capitalization. This surge coincides with the official launch of Ripple’s newly introduced dollar-pegged stablecoin, RLUSD, reinforcing growing investor confidence and signaling a strategic shift in the XRP ecosystem.
Ripple Launches RLUSD on XRP Ledger
Ripple has officially launched RLUSD, its U.S. dollar-backed stablecoin, directly on the XRP Ledger (XRPL). This move strengthens the utility and infrastructure of the XRP network, positioning it as a core settlement layer for digital asset transactions. Unlike many stablecoins operating on Ethereum or other blockchains, RLUSD is natively built on XRPL—bringing faster settlement times, lower fees, and deeper integration with XRP’s native functionalities.
The introduction of RLUSD is more than just an expansion of Ripple’s product suite; it represents a strategic effort to deepen the economic relationship between the stablecoin and XRP itself. Analysts note that every RLUSD transaction will require a small amount of XRP to be burned as part of the network fee. This mechanism reduces the total circulating supply of XRP over time, introducing a deflationary pressure that could positively impact its long-term valuation.
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How XRP Burning Enhances Scarcity and Value
The concept of token burning—permanently removing coins from circulation—is not new in crypto, but its implementation here is particularly impactful. Each time RLUSD is used for payments, trades, or cross-border transfers on the XRPL, a fraction of XRP is consumed and removed from availability. While individual burns may be small, their cumulative effect can significantly influence supply dynamics, especially as RLUSD adoption grows.
Adam O’Neill, CMO of Bitrue, explained:
"Transactions involving RLUSD burn a small amount of XRP as a fee. Over time, this increases scarcity and translates into higher asset prices. The success of both assets is now interlinked—and investors have recognized this connection."
This built-in deflationary model sets XRP apart from many other large-cap cryptocurrencies that lack programmatically enforced supply reduction mechanisms. As RLUSD gains traction in remittances, DeFi, and institutional payments, the frequency of XRP burns is expected to rise—potentially creating sustained upward pressure on price.
Market Reaction and Growing Investor Confidence
The market response has been swift and positive. Beyond the immediate 12.5% price jump, trading volume for XRP spiked significantly, indicating strong buying interest. The momentum builds on an already strong second half of the year for XRP, which recently surpassed both USDT and SOL to briefly claim the title of the third-largest cryptocurrency by market cap.
Analysts attribute part of this optimism to broader regulatory expectations following recent U.S. political developments. With Donald Trump’s victory in the 2024 presidential election, there is growing anticipation for a more crypto-friendly regulatory environment. Investors believe this could accelerate approval processes for key initiatives—including a potential XRP ETF in the United States.
Brad Garlinghouse, CEO of Ripple, previously stated that an XRP ETF is “inevitable,” citing increasing institutional demand and clearer regulatory pathways. While such an approval would depend on SEC decisions, the launch of RLUSD strengthens Ripple’s case by demonstrating real-world utility and compliance-ready infrastructure.
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Frequently Asked Questions (FAQ)
Q: What is RLUSD?
A: RLUSD is a U.S. dollar-pegged stablecoin launched by Ripple and built natively on the XRP Ledger. Each token is backed 1:1 by reserves in U.S. dollars and aims to facilitate fast, low-cost global payments.
Q: How does RLUSD affect XRP’s price?
A: Every RLUSD transaction burns a small amount of XRP as a network fee. This reduces the total supply over time, increasing scarcity—a factor that can drive long-term price appreciation if demand remains steady or grows.
Q: Is RLUSD available on all exchanges?
A: Initially, RLUSD will be integrated within XRPL-based platforms and select partners. Broader exchange listings are expected as adoption expands.
Q: Could RLUSD become one of the top stablecoins?
A: Analysts like Alex Obchakevich of Obchakevich Research believe RLUSD has strong potential to enter the top 100 cryptocurrencies by market cap in the near term, thanks to its direct link to XRP and Ripple’s global payment network.
Q: Does the RLUSD launch mean Ripple won the SEC lawsuit?
A: While Ripple hasn’t fully resolved all legal matters with the SEC, recent court rulings have favored certain aspects of its case—particularly regarding programmatic sales of XRP. The RLUSD launch suggests growing confidence in regulatory clarity.
Q: Can I stake or earn yield on RLUSD?
A: Yes—RLUSD is designed for use in decentralized finance (DeFi) applications on XRPL, where users can provide liquidity, lend tokens, or participate in yield-generating protocols.
Strategic Implications for the XRP Ecosystem
The integration of RLUSD marks a pivotal moment for the XRP ecosystem. It transforms XRPL from a primarily transaction-focused blockchain into a multifaceted financial platform capable of supporting stablecoins, smart contracts, DeFi protocols, and institutional-grade settlement systems.
Moreover, this development aligns with Ripple’s long-term vision of enabling seamless cross-border payments using digital assets. By embedding economic incentives directly into the network’s architecture—such as XRP burning—Ripple creates a self-reinforcing cycle: more RLUSD usage → more XRP burned → tighter supply → stronger price fundamentals → increased adoption.
As global institutions continue exploring blockchain-based solutions for remittances and liquidity management, XRPL’s efficiency and compliance focus position it as a leading contender in enterprise-grade fintech innovation.
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Final Thoughts
XRP’s 12% surge is not just a short-term reaction—it reflects a fundamental shift in perception about the asset’s utility and long-term viability. With the launch of RLUSD, Ripple has successfully created a symbiotic relationship between its native token and a new class of digital dollar assets. Combined with favorable regulatory outlooks and growing institutional interest, these developments suggest that XRP may be entering a new phase of growth driven by real-world use cases rather than speculation alone.
For investors and developers alike, the evolving XRPL ecosystem offers compelling opportunities—from yield generation with RLUSD to participating in a deflationary token model that rewards early adoption and sustained engagement.
As always, thorough research and risk assessment are essential when navigating cryptocurrency markets—but few projects today combine technological innovation, regulatory progress, and economic design quite like Ripple’s latest initiative.