- Market fears are raised as Ripple postpones the launch of its $RLUSD stablecoin, causing the price of the XRP token to plummet.
On Wednesday, XRP, the native cryptocurrency of Ripple, had a precipitous 6% loss, falling from an intraday high of $2.68 to finish at $2.3574.
Due to this decline, Tether’s USDT, which is valued at $135.8 billion, has surpassed XRP as the third-largest cryptocurrency by market capitalization.
The price decline coincided with Ripple’s declaration that it will postpone the introduction of its stablecoin, $RLUSD, which increased investor anxiety and market turbulence.
The XRP token is declining due to worries about panic selling
Citing the requirement for final approval from the New York Department of Financial Services, Ripple announced on Wednesday that the launch of its $RLUSD stablecoin would be delayed.
The announcement caused market ambiguity, which impacted XRP’s performance even though the action was made to guarantee regulatory compliance.
Following the news, XRP trading volumes fell from $32 billion to $16 billion, indicating that selling pressure was increasing.
At $26.02 billion, the token’s 24-hour trading volume fell by about 40% overall.
XRP’s decline may potentially be impacted by a wider spike in stablecoin activity, which would further complicate matters.
Stablecoin volumes increased by 26.88% to $327.85 billion over the last day, dramatically altering the dynamics of the market.
Nonetheless, analysts remain hopeful about XRP’s rebound.
The token is unlikely to fall below $2 once more, according to market analyst @ergagcrypto.
As Ripple’s SEC case draws to a close, the prospects for the XRP token improve
There may now be an end in sight to Ripple’s protracted legal spat with the U.S. Securities and Exchange Commission (SEC).
The current SEC chairman, Gary Gensler, is scheduled to retire in January, and market observers believe that Paul Atkins, his successor, may adopt a more pro-crypto position.
Atkins may have a positive impact on Ripple’s current legal issues because of his reputation for promoting cutting-edge financial innovations while maintaining regulatory compliance.
The rumors have been heightened by the recent meeting between Donald Trump and Brad Garlinghouse, the CEO of Ripple.
Although the specifics of the conversation are still confidential, some people think it might result in legislation that is advantageous to Ripple or perhaps strategic alliances.
Now, cautiously optimistic investors and market observers are looking forward to January, wondering if this is the time when Ripple truly reverses the tide in its favor.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
