Ripple Labs’ recent announcement of its plan to introduce a native stablecoin on the XRP ledger has ignited a significant surge in the XRP price rally. In just 24 hours after the news of the stablecoin launch broke, the XRP Open Interest experienced a notable increase from $899 million to $981.2 million, representing a 9% growth.
Over the past two days, the XRP price has been steadily climbing, with a gain of over 3% and inching closer to $0.60. This surge in price and market cap, which now stands at $32.5 billion, can be attributed to Ripple Labs’ announcement of the native stablecoin launch, as reported by Crypto News Flash.
Ripple Labs revealed its plans to introduce its own stablecoin on the XRP ledger blockchain network on April 4. Set to be released later this year, this forthcoming stablecoin will maintain a 1-to-1 peg with the US dollar and will be backed by cash equivalents such as US dollar deposits, US government bonds, and other low-risk investments.
Currently, the global stablecoin market is valued at $150 billion, with Tether’s USDT occupying the majority share of 69.5% and a valuation of over $100 billion. Interestingly, experts project that by 2030, the stablecoin market will grow 20 times to reach $2.8 trillion. Given this immense market potential, Ripple’s decision to launch its native stablecoin comes at a crucial time. Ripple President Monica Long emphasized the XRP Ledger’s inherent features, such as a decentralized exchange and automated market maker, which are designed to leverage XRP as the bridge currency. Introducing a credible stablecoin to the XRPL is expected to drive increased adoption and development, ultimately enhancing the overall ecosystem.
Evidence of strategic positioning by XRP holders in anticipation of a favorable price impact following the stablecoin launch was observed through preliminary on-chain activities on April 4. Within 24 hours of Ripple’s announcement, the XRP Open Interest, which represents the total invested capital in the futures derivatives markets, surged from $899 million to $981.2 million.
This $82 million growth in Open Interest signifies a significant 9% increase, surpassing the 3% growth in XRP price observed within the daily timeframe. This rise in open interest suggests an influx of new funds into the market, indicating that investors are opening new positions at a faster pace than closing existing ones.
In just 24 hours after the stablecoin launch announcement, XRP witnessed a surge in fresh capital inflows, surpassing $82 million, despite spot prices remaining below $0.60. If this trend continues and the market continues to deepen with increased liquidity, there is a potential for an XRP price breakout towards $0.70.
However, for this optimistic projection to be confirmed, the XRP price must reclaim the critical $0.65 level. Only then can we expect to see a significant upward movement in the XRP price.