The potential of XRP being the next best thing has been in discussion for years mostly because of its strong technology backing and its recent regulatory clarity. The community has shown high hopes for not only a possible price surge but for also breaking in as the next most valuable asset.
A researcher shared his opinion on X, pointing at the correlation between Bitcoin and Ethereum with the Tether stablecoin USDT, noting that a potential “burble burst” will trigger a rise in popularity for XRP, cementing it as the next favorable coin to turn to. A recent report from Lookonchain revealed that over 3 billion USDT was minted in one week, raising speculations about the flow of the newly minted stablecoins.
Relationship Between BTC, ETH, and USDT Liquidity
An on-chain researcher SMQKE, shared his ideas in a lengthy post on X (formerly Twitter). In his post, he described how the stability of Bitcoin and Ethereum is tied to the USDT reserve and how XRP will eventually supplant the two largest cryptocurrencies to become the sole most valuable asset soon.
According to him, Tether manipulates the market and the implications of these manipulations when discovered will be critical. He pointed out the eventual exposure of this could trigger a huge market correction since Tether supplies more USDT to inflate Bitcoin price without significant reserves.
Moreover, SMQKE noted that when the USDT backing is found inadequate or the manipulations come to the surface, the effect on Bitcoin and Ethereum could be devastating and eventually undermine the credibility of other cryptocurrencies that also rely on USDT for backing. Recent research from the Bank of France supports the idea of a strong relationship between Bitcoin’s price and Tether’s liquidity.
How XRP Will Become the Next Most Valuable Asset
Unlike Bitcoin and Ethereum, XRP is free from the speculations surrounding them. Per SMQKE, XRP has more stability and technological superiority, especially in terms of global transactions and regulatory compliance. The stability of the Ripple-backed token positions it as a more reliable asset and a better alternative as the market prepares for a possible breakdown from the inflated valuations of BTC and ETH.
Additionally, the highly anticipated launch of the RLUSD stablecoin on the XRP Ledger underscores its growing significance. The RLUSD stablecoin will comply with strict regulations and ensure transparency, unlike Tether which has regulatory concerns hanging in the balance. SMQKE stressed that the launch of the Ripple stablecoin will reduce Tether’s dominance over the market which might eventually lead to its exit from the market.
Consequently, “XRP will emerge as the next most valuable and stable asset” once the speculative bubble surrounding Tether’s manipulation of BTC and ETH prices burst. Ultimately, SMQKE projects that XRP will be made the “cornerstone” of the future of the crypto economy and RLUSD will fill the void left by USDT upon market exit.
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