XRP is surging in early trading as Ripple Labs officially launches its new stablecoin, RLUSD, on select global exchanges. This strategic move marks a pivotal moment for the XRP ecosystem and could serve as a major catalyst for price growth throughout 2025.
The US dollar-pegged Ripple USD (RLUSD) is expected to roll out across major platforms like Coinbase and Robinhood in the near future. According to Georgios Vlachos, cofounder of Axelar, this expansion could significantly boost demand for XRP by increasing transaction volume on the XRP Ledger and XRP-EVM sidechain.
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The Strategic Rationale Behind RLUSD
Ripple’s decision to launch a stablecoin stems from the rapid growth observed in cross-border payments. Jack McDonald, Senior Vice President at Ripple, emphasized that RLUSD is designed to be “more cost effective and operationally efficient to use” than existing solutions.
Stablecoins have become essential tools in global finance—especially in emerging markets—where they serve dual roles as mediums of exchange and stores of value. With RLUSD, Ripple aims to strengthen its position in international remittances while simultaneously driving utility for its native token, XRP.
Every transaction conducted using RLUSD on the XRP Ledger requires gas fees paid in XRP. As Vlachos explained, “When you do those transfers, you pay for gas in XRP. So, the XRP holders are still going to benefit because you burn some XRP every time you do a transaction.”
This built-in economic model creates continuous demand for XRP, reinforcing scarcity and long-term value accrual.
Why Has XRP Surged Over the Past Six Weeks?
The recent rally in XRP price isn’t just about RLUSD. A confluence of positive developments has reignited investor confidence.
First, market sentiment shifted dramatically following Donald Trump’s return as the Republican presidential nominee. His pro-crypto platform, which includes plans to make the U.S. the global leader in digital asset innovation, has raised expectations for regulatory easing—particularly beneficial for projects like Ripple that have faced prolonged SEC scrutiny.
Second, institutional interest is mounting. On November 25th, WisdomTree filed for an XRP exchange-traded fund (ETF), joining firms like Bitwise, 21Shares, and Canary Capital. This follows the successful precedent set by Bitcoin ETFs, which helped propel BTC from under $45,000 to over $106,000 after SEC approval.
If regulators greenlight an XRP ETF, history suggests a similar influx of institutional capital could follow—potentially pushing XRP past its previous all-time high of $2.90.
Could XRP Reach $30 by 2025?
While ambitious, forecasts suggesting XRP could hit $30—or even $35—are gaining traction among analysts. Crypto expert Steph recently projected a potential 1,250% price surge by 2025, driven by strong technical signals and renewed ecosystem momentum.
Key indicators support this bullish outlook:
- A breakout on the monthly chart confirms sustained upward momentum.
- The formation of a "W" bottom—a classic bullish reversal pattern—suggests strong accumulation by smart money.
- Whale activity has spiked: Whale Alert reported a mysterious transfer of 60 million XRP between two anonymous wallets, coinciding with a 10% price jump.
These developments point to growing confidence among large holders and institutional players alike.
XRP Emerges as the Fourth-Largest Cryptocurrency
XRP’s market capitalization has surged past $138 billion, overtaking Solana and securing its place as the world’s fourth-largest cryptocurrency. Since election day, the asset has gained nearly 400%, earning it the nickname “the biggest winner of the Trump trade.”
Matt Hougan of Bitwise Asset Management believes this is only the beginning. “Now we get to see what this blockchain that works, has an engaged community, a strong foundation, and a unique, really cheap to maintain consensus mechanism can do in the business world,” he said in a recent CNBC interview.
With regulatory headwinds potentially shifting to tailwinds under a new administration, Ripple stands to benefit more than most. Years of legal battles may finally give way to widespread adoption in banking and fintech sectors.
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Frequently Asked Questions (FAQ)
Q: What is RLUSD and how does it impact XRP?
A: RLUSD is Ripple’s newly launched US dollar-backed stablecoin. It operates on the XRP Ledger and XRP-EVM, requiring XRP for transaction fees. Increased usage of RLUSD drives demand for XRP through gas fee burns.
Q: Is an XRP ETF likely to be approved?
A: Multiple asset managers—including WisdomTree and Bitwise—have filed for an XRP ETF. While no decision has been made, the approval of Bitcoin ETFs sets a favorable precedent, especially if regulatory sentiment shifts under future U.S. leadership.
Q: Can XRP really reach $30 by 2025?
A: While not guaranteed, analysts cite technical patterns, rising institutional interest, and growing ecosystem utility as key drivers. A 1,250% increase from current levels would bring XRP into the $30–$35 range—a bold but plausible target given historical crypto rallies.
Q: How does RLUSD compare to other stablecoins like USDT or USDC?
A: Unlike general-purpose stablecoins, RLUSD is strategically integrated into Ripple’s cross-border payment network. This gives it a clear use case in international remittances and financial settlements, potentially driving higher adoption within institutional corridors.
Q: Does burning XRP during transactions reduce supply over time?
A: Yes. Each transaction on the XRP Ledger destroys a small amount of XRP as a fee (not given to miners). This deflationary mechanism gradually reduces circulating supply, which can increase scarcity and upward price pressure over time.
Final Outlook: A Breakout Year Ahead
XRP’s journey through regulatory challenges has tested even the most loyal supporters. But with RLUSD now live and ETF filings underway, the tide appears to be turning.
The combination of real-world utility, institutional validation, and macro-level regulatory optimism positions XRP for potentially explosive growth in 2025. Whether it reaches $30 or not, one thing is clear: the XRP ecosystem is entering a new phase of innovation and adoption.
As global payments continue to evolve, Ripple’s technology—and its native token—may finally receive the mainstream recognition many believed it deserved all along.
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