Potential XRP Price Increase Due to RLUSD Initiatives

crypthub

1 day ago

RLUSD's Role in XRP Acquisition

Xaif argues that RLUSD will significantly impact XRP’s market valuation by acting as a functional tool for institutional acquisition. It facilitates the purchase of XRP without traditional fiat pairs, streamlining the process and reducing volatility. Institutions can efficiently execute high-volume XRP purchases through this USD-pegged stable asset. This direct pathway simplifies acquisition and allows large capital flows through a stable channel.

Order Book Mechanics and Price Impact

RLUSD-driven transactions directly influence exchange order books, impacting XRP's price. Large institutional buy orders will deplete available sell orders, rapidly adjusting the market price. This creates a mechanical effect where concentrated demand exhausts limited supply at lower price levels. Removing previous sell zones establishes new price baselines.

Institutional Usage and Feedback Loop

An example scenario illustrates a $1 billion XRP acquisition through RLUSD, which would quickly absorb lower-priced XRP offerings. XRP acquired through RLUSD can then be used for international settlements, solidifying its operational utility. Repeated transactions create a feedback effect, encouraging holding and usage while diminishing available liquidity.