Is Ripple's RLUSD launch what XRP needs to reach $3?

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Ripple's highly anticipated stablecoin RLUSD has officially launched today, generating significant market interest and a chain reaction.

This issuance also injects positive momentum into XRP, as investor sentiment strengthens, leading to further increases in XRP.

RLUSD enters the $200 billion stablecoin market.

On December 16, Ripple announced that its new stablecoin RLUSD will receive approval from the New York Department of Financial Services (NYDFS) on December 10 and will begin trading on December 17.

The regulatory approval gives Ripple a competitive edge in the ever-expanding stablecoin market, which is valued at over $209 billion.

Tether [USDT] still dominates, with a market cap of $140.5 billion. USDC and Ethena USDe rank as the second and third largest stablecoins, with market caps of $42.3 billion and nearly $6 billion, respectively.

Early bids drive RLUSD prices far beyond its pegged level.

Ripple's Chief Technology Officer David Schwartz revealed that RLUSD had already attracted a large number of bids before its launch, with some quotes as high as $1,200 per RLUSD.

Schwartz indicated that these bids might be emotional or speculative, stressing that as liquidity improves post-issuance, prices will stabilize.

Due to liquidity constraints, RLUSD may face challenges in maintaining its expected $1 pegged exchange rate in the early stages.

However, Schwartz assured the market that each RLUSD token can be exchanged for $1, so any deviation from the pegged rate is temporary.

As trading volume increases and liquidity improves, price discrepancies are expected to resolve.

XRP price surges: Can it reach $3?

Benefiting from strong bullish sentiment and technical momentum, XRP's price surged to $2.57 after the RLUSD launch.

The 50-day moving average is at $1.45, providing strong support, while the 200-day moving average is at $0.77, highlighting the strong long-term bullish trend for XRP.

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