The stablecoin market experienced significant growth in 2024 due to increased cryptocurrency adoption and institutional participation. The focus is now on Ripple’s recently approved stablecoin, Ripple USD (RLUSD). However, Ripple’s CTO, David Schwartz, addressed concerns about potential price anomalies for the asset during its launch.
He clarified that while RLUSD is designed to maintain a stable $1 peg, temporary price fluctuations may occur due to supply shortages. These aberrations are likely caused by speculative behavior or individuals seeking the “honor” of acquiring the first fraction of RLUSD on decentralized exchanges. Schwartz stated that these price deviations will likely be corrected quickly by arbitrage activities, restoring the stablecoin to its intended $1 value.
He urged potential buyers not to be swayed by FOMO (Fear of Missing Out) and to focus on the stability aspect of the stablecoin rather than speculative opportunities.
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