Critics Say RLUSD Is End Of XRP, But Ripple’s Smart Play Could Prove Them Wrong

Even before the launch of Ripple’s RLUSD stablecoin, the speculations that XRP is over or dead have been circulating in the crypto market. Critics have cited various reasons that hint towards the downfall of this prominent cryptocurrency, including its consolidatory price performance. Now, one crypto analyst has debunked all these FUD and beliefs. Let’s discuss.

Why Critics Believe XRP is Over After RLUSD?

The primary concerns of the critics include Ripple’s pivot to the RLUSD, which could diminish XRP. Critics argue that the introduction of this stablecoin makes the Ripple token unnecessary.

This is because the firm has created its token for cross-border payments, even for use in banks, but that mindset should change with the launch of RLUSD, as this works without the risk of volatility.

Apart from internal competition, the questions also arise about XRP’s low usage. Critics cite that the network activity is dropping and the adoption is low, regardless of the ongoing developments. As a result, a major FUD has developed, dividing the crypto community on their belief.

XRP Matters More Today With Ripple’s Smart Play, Says Expert

The main themes of this Ripple FUD include the replacement of XRP with RLUSD and the crypto token’s lack of real-world attention. Additional focus is on the blockchain firm’s large token holding of the native token, which is seen as a centralized risk.

RLUSD Is a Threat?

Prominent crypto analyst Jungle Inc. calls this criticism flawed. He cites Ripple’s official announcement that RLUSD is designed to complement the native token by acting as a fiat bridge. It allows the institutes to access the blockchain infrastructure without the consequences of volatility.

You can’t scale XRP without making it easier to access -RLUSD is how they do it.

More importantly, experts cite that the XRPL EVM sidechain is live, which uses XRP as a gas, strengthening its position in the market. With that, RLUSD’s role is as a Compliant money layer, and EVM chain as a Smart Contract ecosystem.

Besides, the stablecoin cannot replace the native token as it feeds its demand. “Every time RLUSD is used on Ripple’s EVM sidechain, the native token is burned as gas.”

Overall, the XRP  powers the Ripple network, whereas RLUSD brings a stable value similar to ETH and USDC on Ethereum.

Low Volume Isn’t a Testament to Crash

The experts acknowledged the low usage of the XRP but cite that the development overcomes such metrics. He presented the example of  ETH when it was facing low usage in 2016, but the Smart Contracts, DeFi rails, and other developments filled the gap.

That’s exactly what’s now happening— but with Ripple’s $10B+ war chest backing it.

Besides, Ripple token is not just a bridge asset for banks; it’s a core infrastructure token. With similar roles, ETH is worth $400B, so can be a Ripple token.

Ripple XRP Stash – Curse or Weapon?

It is true that there’s a centralization risk associated with this blockchain’s holding, but experts reveal that it’s being strategically deployed. The SEC lawsuit is still on, and the firm is using that reserve to fund its developments.

This includes the EVM sidechain, bank integration, and RLUSD onboarding global partners. With that, the experts called the reserve a powerful tool for adoption and liquidity rather than a threat.

With all this information unraveling, XRP’s role is certainly much stronger than many estimated. Its market position as the fourth biggest cryptocurrency with a current price of $2.23, $132 billion market cap, and $2 billion trading volume again solidifies its demand in the market.

Unless there is a drastic decline in its adoption and usage in the Ripple network, XRP is far from over, per experts.

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Pooja Khardia

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.