$BTC #TradeOfTheWeek #CryptoComeback $XRP
Date: May 8, 2025
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Amid the increasing importance of RLUSD in the cryptocurrency market, concerns regarding XRP's diminishing role have sparked discussions within the community.
Community member Elena Shawn, who describes herself as a chain investigator, recently raised concerns that Ripple may be slowly working to marginalize XRP, limiting it to a restricted function.
Is Ripple replacing XRP with RLUSD?
Regarding X, she suggested that XRP now primarily serves the function of transaction fees on the XRP Ledger, with RLUSD taking on broader tasks such as liquidity, cross-border transactions, institutional settlements, retail, and multi-currency listings.
- Announcement -
Shawn urged the community to carefully study Ripple's position and form opinions based on facts. She emphasized that the only fundamental need for XRP is its role in covering fees.
According to her, RLUSD has become the preferred asset for almost all other functions on XRPL, although XRP is the default physical asset. She also noted that over time, this default status may lose its significance.
It is worth noting that these concerns have emerged as RLUSD continues to gain momentum. Since its launch in December 2024, RLUSD's popularity has increased significantly, having recently been listed on Gemini, a leading US trading platform. The stablecoin is now ranked twelfth in terms of volume in this sector, with a market cap of $316 million and a 24-hour trading volume of $59 million.
Others disagree
However, not all community members share Shawn's concerns. Alex Beasley argued that RLUSD is likely the first in a series of regional stablecoins, including potential releases like RLGBP, RLEUR, and RLJPY. He claimed that XRP would be important as the common link connecting these currencies.
Meanwhile, Dennis Beuys noted that XRP's value lies in its hidden role as the "silent backbone" of tokenized finance, enabling seamless exchanges between stablecoins and central bank digital currencies. He sees XRP's true power in its infrastructure, not in its media hype.
- Announcement -
Also, last month, following Ripple's announcement of the integration of RLUSD with Ripple's payment service, concerns arose within the XRP community. However, experts, such as "All Things XRP," confirmed that the two assets will integrate, with RLUSD providing price stability while XRP offers speed and efficiency.
Previous comments from Ripple executives
It is worth noting that in response to these growing concerns, Ripple officials renewed their commitment to using XRP. For instance, during the 2024 XRP Ledger Apex Summit, David Schwartz, Ripple's CTO, explained the importance of stablecoins like RLUSD in maintaining price consistency and reducing volatility.
However, he pointed out that XRP retains an important role within XRPL through advanced features like pathfinding and automatic linking that favor its liquidity.
Schwartz also confirmed in October 2024 that RLUSD cannot replace XRP due to the latter's unique properties, including its role in transaction fees, immunity to freezing, and independence from judicial constraints.
Moreover, President Monica Long addressed the cryptocurrency community last October following the announcement of RLUSD's exchange partners. She confirmed that Ripple's strategy based on the two tokens is intentional, allowing customers to choose between XRP and RLUSD according to their transaction needs.
In an interview with Citizens Bank in January 2025, Brad Garlinghouse, the CEO of Ripple, confirmed that RLUSD and XRP serve completely different purposes. He explained that RLUSD represents fiat on-chain, while XRP acts as a fundamental intermediary asset to provide liquidity between different currencies.
