XRP Demand To Surge in 2025 as RLUSD Stablecoin Launches With Backing and Key Ecosystem Developments

Ripple’s XRP is at the center of growing attention due to major ecosystem developments and price movements. The upcoming RLUSD stablecoin, pegged to the U.S. dollar, is set to launch on the XRP Ledger (XRPL) and Ethereum blockchains, backed 1:1 by cash reserves and short-term cash equivalents like U.S. Treasury bills. Approved by the New York Department of Financial Services, RLUSD will require XRP for transaction fees, which are burned during transfers, driving demand for the token. Axelar co-founder Georgios Vlachos noted that RLUSD’s utility, particularly in emerging economies where stablecoins are widely used for transactions and savings, will significantly boost XRP adoption in 2025. Axelar’s interoperability platform also links XRPL to 69 other blockchains, enabling seamless integration.

XRP experienced a historic rally in late 2024, hitting a seven-year high of $2.90 on Dec. 3 before settling at $2.40. This surge followed pro-crypto rhetoric from U.S. President-elect Donald Trump, who promised regulatory changes to support the crypto industry after his electoral win on Nov. 5. Ripple’s ongoing partnerships, such as its collaboration with the Axelar Foundation to expand the XRPL EVM sidechain’s connectivity to over 80 blockchains, have also fueled optimism. Ripple’s developer-focused account revealed that these efforts would reduce transaction costs and increase network efficiency.

Meanwhile, market interest in XRP continues to grow. On Dec. 1, XRP surpassed Solana in market capitalization, ranking as the fourth-largest cryptocurrency with a current market cap of $138 billion, close to Tether’s $140 billion. This shift was bolstered by asset management firm WisdomTree’s filing for an XRP exchange-traded fund (ETF) on Nov. 25, joining earlier applications from Bitwise, Canary Capital and 21Shares. These developments underscore XRP’s increasing prominence among both institutional and retail investors.