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- Ripple stablecoin prepares for launch in the next few weeks, according to CEO Brad Garlinghouse.
- RLUSD could benefit XRP through stablecoin gas transaction activity, says analyst.
- XRP trades at $0.53, corrects slightly on Tuesday.
Ripple (XRP) recently announced the launch of its stablecoin project, Ripple USD (RLUSD). In an interview at Korea Blockchain Week in the first week of September, CEO Brad Garlinghouse said that the asset’s launch is weeks away.
XRP exchanges hands at $0.5387, and traders are keeping their eyes peeled for an RLUSD launch date.
Daily digest market movers: Analyst predicts XRP stands to gain from RLUSD
- Crypto analyst behind the X handle @Sentosumosaba said in a recent tweet that XRP Ledger’s native token stands to gain from Ripple stablecoin launch.
- RLUSD launch could benefit the altcoin as it would contribute to higher activity on the ledger and XRP is the gas token.
- Analyst expects XRP to gain from higher demand for the altcoin.
Just as #ETH is used for gas, #XRP is also used for gas (among other things). Since the SEC Docs explained ODL is price neutral, bring on as much of that stablecoin gas transaction activity on the #XRPL Mainnet as possible. Trillions please.
Every currency would be nice.— Crypto Eri Carpe Diem (@sentosumosaba) September 8, 2024
- While on-demand liquidity provided to institutional investors does not typically influence price, demand for the gas token could catalyze gains.
- In a September 4 fireside chat at Korea Blockchain Week, Brad Garlinghouse said that the launch of Ripple stablecoin is only weeks away.
- CTO David Schwartz informed crypto market participants in a recent tweet that RLUSD will be available to institutions exclusively, compared it to Circle’s stablecoin, USD Coin (USDC), and Tether’s USD Tether (USDT).
Technical analysis: XRP corrects slightly on Tuesday
Ripple is currently in a downward trend. The altcoin could extend its losses to the September 6 low of $0.5026. This marks a 6.7% decline in XRP from the current price level. The Moving Average Convergence Divergence (MACD), a momentum indicator, supports the bearish thesis.
The red histogram bars under the neutral line on MACD are indicative of an underlying negative momentum in XRP price.
XRP/USDT daily chart
A daily candlestick close above $0.6000, a key psychological level for XRP, could invalidate the bearish thesis. XRP could target the upper boundary of the Fair Value Gap (FVG) at $0.6217, the July 31 low for the altcoin.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.