XRP Price Poised for Another Breakout: The “Game-Changing Impact” of Ripple’s RLUSD Mints

XRP has experienced a significant upswing in the last few weeks. Notably, the XRP price recently rose to $2.81, its highest market value since January 2018, marking a significant milestone in its price development. Interestingly, the XRP price surge has seen it outperform most cryptocurrencies and overtake BNB, Solana, and Tether USDT in the market cap rankings. If XRP price momentum increases, another stimulus could be on the rise that would push the price even higher. In particular, new speculation about Ripple using its escrow reserves for RLUSD mints is gaining attention across the cryptosphere.

Ripple’s RLUSD minting strategy and escrow account

According to rumors, Ripple, the payment technology company behind XRP, may be planning to use its escrow XRP as an initial reserve for RLUSD minting. As the largest holder of XRP, Ripple currently has approximately 37.24 billion tokens in escrow, with a set share of 1 billion XRP tokens being unlocked every month.

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Meanwhile, RLUSD is Ripple’s new dollar-backed stablecoin that is set to launch soon. Regulatory approval from the New York Department of Financial Services (NYDFS) is expected on December 4th.

Accordingly a crypto analyst On the social media platform This approach could deliver two transformative outcomes for Ripple and the broader XRP Ledger (XRPL) ecosystem: a significant infusion of liquidity and a controlled reduction in the overall supply of XRP. Additionally, it would provide utility for the locked XRP tokens owned by Ripple.

Game-changing impact on XRP price and XRPL

With RLUSD, Ripple would enter a stablecoin market dominated by heavyweights like USDT and USDC. However, given its long experience in the crypto industry, Ripple could be in a good position to compete with other stablecoins.

If RLUSD becomes widely adopted, there will be indirect demand for XRP, which will increase its utility. In this context, higher demand for XRP could have a positive impact on the price. Additionally, the process of minting RLUSD could involve effectively locking XRP tokens when used in escrow, resulting in lower circulating supply and further supporting price growth.

At the time of writing, XRP is trading at $2.74 and is currently up around 12% and 90% in the last 24 hours and seven days, respectively. The rally follows heavy accumulation by whales, with wallets holding between 1 and 10 million XRP, accumulating a total of over 679.1 million tokens in three weeks. according to information from On-chain analytics firm Santiment.

Interestingly, this accumulation is currently valued at approximately $1.66 billion. Such an accumulation trend could further push the XRP price towards a positive path with the next target a break above $3 and a subsequent breakout to a new all-time high above $3.40.

Featured image created with Dall.E, chart from Tradingview.com