- The announcement by Ripple that it will introduce a native Stablecoin to the XRP ledger is a significant factor in the XRP rally.
- Within 24 hours after the news about stablecoins, XRP’s Open Interest jumped up from $899m to $981.2m, a 9% jump.
In the past two days, the XRP has gained over. 3% Its market capitalization has risen to 32.5 billion dollars. The recent surge in XRP prices comes as Ripple announced its launch of a native stablecoin. reported by Crypto News Flash.
Ripple announced its intent to launch a stablecoin proprietary on the XRP blockchain ledger network on 4 April. Ripple will release a stablecoin later this year that maintains a peg of 1 to 1. The company announced that it would be backed by low-risk investment options such as U.S. Dollar deposits and U.S. Treasury bonds.
Tether’s US Dollar (USDT) is the dominant stablecoin in terms of market size, accounting for 69.5% and a value of $100 billion. By 2030, it is estimated that the market for stablecoins will grow by 20x, reaching $2.8 trillion. Ripple has launched its stablecoin in response to this enormous market potential. Ripple President Monica Long noted,
XRP Ledger features such as a decentralized market maker and automated exchange are intended to use XRP for the bridge currency. The introduction of a stablecoin into the XRPL will increase adoption and develop the ecosystem.
XRP Price Action and Open Interest
The preliminary activities on the chain detected on 4 April indicate that holders of Stablecoin are strategically positioning themselves to anticipate a positive price impact following the announcement.
Within 24 hour of Ripple’s announcement about the proposed launch of stablecoins, XRP Open Interest (representing the total capital in futures derivatives market) soared from $899 millions to $981.2million.
The $82 million increase in Open Interest represents a 9% growth, which is higher than the 3% daily growth of XRP. Open interest has increased significantly, which indicates that new money is entering the market. This means investors are taking on new positions faster than they’re closing old ones.
Within 24 hours following Ripple’s announcement of the stablecoin launch, XRP experienced a surge of fresh capital flows, surpassing $82 million even though spot prices remained below $0.60. This trend could continue and if the increased liquidity in the market is maintained, the price of XRP may rise towards $0.70.
XRP’s price must regain its critical level of $0.65 to confirm our optimistic XRP projection.
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Source: www.crypto-news-flash.com