Ripple, the creator of the XRP ledger, has recently announced its plans to launch a stablecoin pegged to the US dollar. The digital asset, expected to arrive later this year, will initially be available on both the XRP ledger and Ethereum blockchains.
The announcement has had an immediate impact on the price of XRP, with the cryptocurrency surging from $0.57 to a high of $0.61 following the news. This price action has reignited discussions about XRP’s potential to reach the coveted $1 mark, a milestone that has eluded the cryptocurrency in recent months.
According to a statement provided to CoinDesk, Ripple’s stablecoin will be “100% backed by US dollar deposits, short-term US government Treasuries and other cash equivalents.” This backing ensures that the stablecoin maintains a stable value, mitigating the volatility often associated with cryptocurrencies.
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Ripple CTO David Schartz expressed the firm’s ambition to “conquer the market and be in it for the long term,” highlighting the company’s commitment to establishing a strong presence in the stablecoin space. The launch of the USD-pegged stablecoin is expected to provide users with a reliable and efficient means of transacting and storing value within the Ripple ecosystem.
XRP’s Market Performance and Future Prospects
The news of Ripple’s stablecoin plans has had a significant impact on XRP’s market performance. The cryptocurrency currently boasts a market capitalization of $32,024,155,292, ranking it as the 7th largest digital asset. Furthermore, XRP’s 24-hour trading volume has increased by a remarkable 42.45%, reaching $2,188,338,772 and ranking 8th in terms of daily volume.
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Despite the recent surge in price and market activity, experts remain cautious about XRP’s short-term prospects. According to an analysis by Changelly, a prominent cryptocurrency exchange, XRP is unlikely to hit the $1 mark anytime soon. However, the experts note that a positive outcome in the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) could provide the necessary catalyst for XRP to push higher.
Looking further ahead, Changelly’s analysis suggests that XRP has the potential to reach new heights in the coming years. After analyzing the historical price data of XRP, the experts assume that by 2025, the minimum price of XRP could be around $1.07, with a maximum expected price of $1.32. On average, the trading price of XRP might be $1.10 in 2025.
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These long-term price predictions offer a glimmer of hope for XRP investors and enthusiasts, who have been eagerly awaiting the cryptocurrency’s return to its former glory.