The approval of Ripple's stablecoin RLUSD by the New York State Department of Financial Services (NYDFS) has made the already positive sentiment of XRP investors even more optimistic. The future of XRP is predicted to be very bright as the legal obstacles have been removed.
HOW WILL STABLECOIN RLUSD HELP XRP REACH 20 USD SOON?
According to CoinGecko, the market cap of stablecoins surpassed 200 billion USD in December. Among them, Tether's USDT accounted for up to 70% market share, and Circle's USDC was 20%. This market share has hardly changed significantly over the years.
Although it is unclear what the market cap and influence of RLUSD will be, in an interview on CNBC, Monica Long – President of Ripple predicted that the market cap of stablecoin RLUSD will be valued at 3 trillion USD in the next 5 years.
Along with this vision, many investors believe that the expansion of market cap as well as the demand for RLUSD will benefit the price of XRP. Investor Vincent Van Code's opinions have attracted nearly half a million views, arguing that capital inflow will flow into the XRP Ledger (XRPL) thanks to the appeal of yields from staking RLUSDT and XRP.
Investor Vincent Van Code predicts:
The approval of RLUSD has caused the price of XRP to rise from 1.90 USD to 2.35 USD. This is purely a speculative price increase, not based on fundamental factors. The real price increase will occur when AMM/LP is established and people realize they can earn a 5% APY yield on-chain with low risk. At that point, you will see large inflows into XRPL.
What Vincent says is still speculation. Currently, there is no information or basis regarding the possibility of RLUSD being integrated into AMM and receiving yield from staking. BankXRP's view is that the price of XRP could benefit from high demand for RLUSD trading.
BankXRP stated:
RLUSD benefits XRP through: Promoting the use of XRPL: More transactions on XRPL will increase the demand for XRP. Enhancing liquidity: Attracting more users to XRPL may increase the use of XRP....
BankXRP also predicts that stablecoin RLUSD could encourage acceptance from institutions and positively impact the perception of XRP. Along with these positive predictions, investor Crypto Bitlord believes that the market cap of XRP could increase 10 to 20 times.
Crypto Bitlord predicts:
The current market cap of XRP is only 120 billion USD. According to my calculations, this number will be 10 to 20 times higher, (20 – 30 USD).