Ripple, a prominent cryptocurrency company, has announced plans to introduce a stablecoin on its XRP Ledger. This move is expected to contribute to the massive growth of the stablecoin market, which could reach a staggering $2.8 trillion. According to an expert, this growth could greatly benefit Ripple’s XRP ecosystem.
The expert predicts that XRP will experience a significant surge, increasing by 20 times its current value by 2028, reaching $12 per token. This surge would push XRP’s market cap to $658 billion, surpassing the market value of major companies like Visa, JPMorgan Chase, and Tesla.
Ripple believes that its stablecoin, due to its regulatory certainty, strong financial position, and global network, is perfectly suited to become a major player in the stablecoin market. With connections to numerous banks worldwide, Ripple’s stablecoin could potentially be the first stablecoin utilized in traditional finance.
Stablecoins currently have a market cap of $154 billion, but this figure is projected to grow exponentially in the next four years. Ripple’s stablecoin is expected to contribute significantly to this growth, leveraging its extensive XRP ecosystem and Ripple’s well-established network.
If the stablecoin market cap does indeed increase by 20 times by 2028, XRP would likely experience a similar surge, as suggested by crypto researcher Rob Cunningham. This would result in XRP’s price soaring from $0.59 to $12, with a market cap of $658 billion. To put this into perspective, JPMorgan Chase and Visa, two major financial institutions, have market valuations of $568 billion.
Cunningham also emphasized the unique advantages of an XRP-facilitated U.S. stablecoin, including its global architecture, operational excellence, and support from a wide range of associates and customers. He described Ripple as a dominant force in the global payments industry.
However, it’s important to note that Cunningham’s estimates may not fully align with the reality of the market. Factors such as the launch and reception of Ripple’s stablecoin, as well as the dominance of established stablecoins like Tether and USDC, could influence the market dynamics.
Nevertheless, Cunningham’s projections highlight the immense potential of the stablecoin market and its impact on the growth of cryptocurrency ecosystems. Currently, Tether and USDC dominate the stablecoin market, accounting for 90% of its value. These stablecoins are issued on various blockchain networks, including TRON, Ethereum, and BSC.
The XRPL has demonstrated its ability to compete with these leading blockchain networks, indicating that a stablecoin on the XRPL would be just as effective as on any other chain.
Cunningham concludes by suggesting that the desperation of global banking monopolists and their media allies to disrupt, delay, acquire, or steal innovative technologies stems from their fear of these technologies dismantling their control over the financial system.