Ripple in 2024: RLUSD launch, XRP growth, and global technology expansion
Ripple USD (RLUSD) stablecoin launch
The launch of the Ripple stablecoin was one of the key events in the crypto industry in the second half of 2024. The move marks the company's strategic expansion into the stablecoin segment, which has become an essential part of the cryptocurrency ecosystem in recent years. At the time of Ripple USD (RLUSD)'s launch, the total stablecoin market was valued at $150 billion. Stablecoins such as Tether (USDT) and USDC (USDC) have gained widespread adoption because they maintain a stable value tied to fiat currencies.
Ripple entered this market to offer an alternative product with enhanced transparency and regulation that could compete with existing players, particularly Tether and USDC. In addition, using XRP Ledger for stablecoin transactions should increase activity on the Ripple blockchain and attract new users.
To ensure stability in the value of Ripple USD (RLUSD), the company uses:
- USD deposits. These funds will be placed in reliable financial institutions with high trust.
- Short-term US Treasury bonds. These assets are known for their liquidity and minimal risk, making them an ideal instrument to back up stablecoins.
Ripple also stated that independent organizations audit all reserves monthly. This will help Ripple avoid the criticism that has previously fallen on companies like Tether due to a lack of transparency in reserve management. In addition, Ripple is actively engaging with regulators to ensure that the new product meets all requirements. These measures will ensure that users have confidence in the token's security and make Ripple USD (RLUSD) more attractive to institutional investors.
Initially, the Ripple stablecoin will be available on two blockchains: the XRP Ledger and Ethereum. XPR Ledger features high transaction speeds and low fees, while Ethereum support will attract DeFi (decentralized finance) users, where Ethereum plays a leading role. Ripple plans to expand stablecoin's presence to other blockchains to reach as many users and integrations as possible.
Ripple CEO Brad Garlinghouse said the stablecoin launch is a natural step toward bringing together traditional finance and cryptocurrencies. Ripple aims to compete with USDT and USDC by offering increased transparency and regulatory compliance. The new stablecoin will attract more users and developers to use the Ripple blockchain. Its emergence will open opportunities to create decentralized applications, integrate with existing platforms, and develop the DeFi sector.
XRP price predictions
XRP price predictions have recently attracted a lot of interest, especially against events in 2024. Analysts suggest that the token price could reach a range of $0.75 to $0.86 by the end of the year. There are several reasons for this: the general stabilization of the market after sharp jumps, Ripple's success in court cases, and the launch of new products such as stablecoin.
Incidentally, in November 2024, XRP surpassed the $1.25 mark for the first time since November 2021. This rise, which amounted to 119% in two weeks, was due to several factors. First, Donald Trump's victory in the US presidential election raised expectations of more lenient regulation of the cryptocurrency sector. Secondly, the launch of the RLUSD stablecoin pegged to the US dollar strengthened the company's position in the market and drew attention to its token.
However, in late November, the XRP rally ran into obstacles: the dominance of sellers led to a price decline, and analysts warned of a possible correction to $0.92 if buyers did not become active. Nevertheless, the price of XRP could reach $1.63 under favorable conditions.
Speaking about the future, many experts agree that by the middle of 2025, the token is quite capable of reaching the $1 mark. Among the factors is the institutional acceptance of Ripple technology, which continues to grow. Companies and banks are increasingly interested in XRP as a tool for fast international transfers.
For the longer term, until 2030, forecasts vary widely. Some believe the token could reach $2.27 by 2026 and rise to $3.50 by 2030. Others are more cautious about their expectations but still talk about growth thanks to new Ripple partnerships and increased token use in cross-border payments.
Market dynamics and institutional adoption
During the second quarter of 2024, the cryptocurrency market was in a state of growing institutional interest, which was reflected in XRP and its ecosystem. One of the key developments was the approval of spot Ethereum ETFs in the US. At the same time, it did not directly affect XRP. Ethereum's success as the first cryptocurrency to receive approval as a spot ETF set a precedent Ripple actively used to argue for its role in the digital economy.
Institutional investors who had turned their attention to cryptocurrencies in general began looking beyond Bitcoin and Ethereum to other assets, particularly XRP, due to its unique role in cross-border payments. Ripple has positioned XRP as a financial infrastructure-focused token, not just a speculative asset. This argument has become particularly important amid macroeconomic changes, including inflation and rising interest rates, pushing companies to find tools to speed up international transfers and reduce costs.
The correlation between cryptocurrencies and traditional financial markets (e.g., the S&P 500 Index) reached 0.4 during this period, implying a closer correlation between economic policy and crypto market behavior. For XRP, this translated into a decline in average daily trading volumes of around 20%, reflecting the overall volatility in the market. That said, the price of XRP was also under pressure as the general downturn in BTC and ETH prices affected the most significant assets.
However, Ripple has been able to turn investors' attention to the stability of its blockchain and the use of XRP in real-world scenarios, such as projects with banks and payment systems.
Banks and financial institutions use RippleNet products such as On-Demand Liquidity (ODL), where XRP plays a key role. With ODL, banks can make instant international transfers without holding large amounts in different currencies in correspondent accounts. This reduces costs and risks associated with exchange rate fluctuations.
In 2024, Ripple continued to expand its list of partner banks. Notable achievements include:
- Increased collaboration in Asia Pacific (APAC): Banks from Singapore, Japan, and Australia began to increase their use of ODL. These regions are significant for Ripple as they have a high volume of cross-border transactions.
- Working with Latin American banks: Ripple is developing XRP-based payment systems in Brazil and Mexico, enabling faster and cheaper money transfers between these countries.
In addition to banks, Ripple is partnering with major payment providers. In this case, XRP is a liquidity vehicle for micropayments, money transfers, and corporate transactions. Payment systems like MoneyGram are actively testing and deploying Ripple solutions to accelerate money transfers.
Ripple is also involved in pilot projects to implement digital payment systems in Africa and Southeast Asia, where traditional banking infrastructure is limited.
Technology upgrades and partnerships
In 2023, Ripple made several significant moves that strengthened its position in the international market. One of them was the acquisition of Swiss company Metaco for $250 million. This firm is known for its technology for storing and managing digital assets. Metaco provides secure cryptocurrency solutions, which is especially important for institutional players. In addition, this deal helped Ripple to enter the European market, where Switzerland is a leader in blockchain.
Another significant development was receiving a license in Singapore from the local central bank. This license allows Ripple to provide services related to digital tokens, which opens new opportunities for the company in Asia. Singapore has long been considered one of the world's centers for financial technology, and Ripple's presence in the region has bolstered its reputation. The license also signals to other countries that Ripple can operate in a strict legal environment, making it a reliable partner for financial institutions.
Conclusion
Ripple ended 2024, having made significant progress in the crypto industry. The launch of RLUSD caught the attention of institutional investors, and transaction volume through the XRP Ledger grew by 40%. Successes in technological modernization and infrastructure expansion show that Ripple is not only competing with industry leaders but also shaping its future.
