XRP has experienced a significant boom in recent weeks. Notably, the price of XRP recently rose to $2.81, its highest market value since January 2018, marking a major milestone in its price trajectory. Interestingly, XRP’s price rally has seen it surpass most cryptocurrencies and overtake BNB, Solana, and Tether USDT in the market capitalization rankings. As XRP price momentum grows, another stimulant could be rising that would propel it to a further rise. In particular, new speculation regarding Ripple’s use of its escrow reserves for RLUSD mints is attracting attention across the cryptosphere.
RLUSD Minting Strategy and Ripple Escrow
It is rumored that Ripple, the payments technology company behind XRP, may be planning to use its escrow XRP as an initial reserve for the minting of RLUSD. As the largest holder of XRP, Ripple currently has approximately 37.24 billion tokens in escrow, with a fixed portion of 1 billion XRP tokens unlocked each month.
Related reading: Are you already thinking about selling your Dogecoin? Crypto Analyst places the maximum price in double digits
Meanwhile, RLUSD is Ripple’s new dollar-backed stablecoin expected to launch soon, with regulatory approval from the New York Department of Financial Services (NYDFS) expected on December 4.
According a crypto analyst On social media platform This approach could deliver two transformative outcomes for Ripple and the broader XRP Ledger (XRPL) ecosystem: a substantial injection of liquidity and a controlled reduction in the total supply of XRP. Additionally, it would provide utility for the locked XRP tokens held by Ripple.
Revolutionary implications for XRP and XRPL price
With RLUSD, Ripple would be entering a stablecoin market dominated by heavyweights like USDT and USDC. However, given its long history in the cryptocurrency industry, Ripple could be in a good position to compete with other stablecoins.
If RLUSD becomes widely adopted, there will be indirect demand for XRP, increasing its utility. Greater demand for XRP in this context could positively affect its price. Additionally, the RLUSD minting process could involve effectively locking up XRP tokens if they are used as escrow, resulting in a reduction in circulating supply and further supporting price growth.
At the time of writing, XRP is trading at $2.74 and is currently up approximately 12% and 90% in the last 24 hours and seven days, respectively. The rally follows intense whale accumulation, with wallets containing between 1 million and 10 million XRP collectively accumulating over 679.1 million tokens in three weeks. according to data from Santiment chain analysis company.
Interestingly, this build is currently valued at approximately $1.66 billion. Such an accumulation trend could continue to push XRP price on a positive path, with the next target being a break above $3 and a subsequent breakout to a new all-time high above $3.40.
Featured image created with Dall.E, chart from Tradingview.com
