Why did XRP's price rise today?

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The renewed bullish sentiment in the cryptocurrency market has led to a new uptrend for most major digital assets, with Bitcoin reaching a historical high below $108,000, while Ethereum remains above $4,000. However, XRP has outperformed other digital assets, rising nearly 14% today.

In the past week, the native token of the XRP ledger has performed better than BTC and ETH, rising 21.5% compared to the flagship cryptocurrencies' increases of 9.6% for Bitcoin and 6.8% for Ethereum.

XRP is currently trading at $2.72 per share, with a market capitalization of $155.2 billion, solidifying its position as the third-largest digital asset, surpassing Tether's market cap of $140 billion.

The fintech company noted that RLUSD will be "listed on global exchanges" and that each token "is fully backed by USD deposits, U.S. government bonds, and cash equivalents." The company will enhance the transparency of the stablecoin through independent monthly audits.

RLUSD will initially be available on the XRP ledger and Ethereum, but plans to expand to other blockchains and decentralized finance applications. According to CoinDesk, the launch of RLUSD has already attracted bids of up to 836 XRP on the on-chain market prior to its release.

This actually means that some users are bidding as much as $2,000 per RLUSD (a cryptocurrency redeemable for $1) for the chance to be among the first holders of the stablecoin. This frenzy could mean that RLUSD may struggle to maintain its peg at launch.

However, Ripple's Chief Technology Officer David Schwartz stated on social media that despite traders bidding heavily to obtain RLUSD as soon as possible, "once supply stabilizes, the price will return to near $1 levels."

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