XRPL verifier Following the launch of RLUSD, software developer and veteran Vincent Van Code offered conflicting opinions on the future of XRP’s price in a commentary on X. They emphasized both optimistic potential and realistic constraints.

How Will RLUSD Affect XRP’s Market Value and Adoption?

Since RLUSD was approved by the New York Department of Financial Services (NYDFS), XRP’s price has risen from $1.90 to $2.42 at the time of writing.

According to Van Code. He did not, characterize this spike as being founded on sound fundamentals, but rather as a “speculative pump.” He thinks a real price breakout might occur once the automated market maker (AMM) and liquidity pool (LP) features for RLUSD are activated on the XRP Ledger.

He made the specific claim that this change might have a big effect on XRP, particularly as users can now earn up to 5% APY on-chain “without counterparty risk.” In essence, Van Code hypothesized that RLUSD might draw significant capital inflows into the XRP environment after it joins the DeFi ecosystems. The XRPL will then witness significant inflows of capital, he stated.

Van Code added that exchanges will probably try to take advantage of this chance by providing RLUSD staking. He predicted that by locking XRP directly on the XRPL, they would get 5% returns. Many wonder how will RLUSD affect XRP as it integrates deeper into DeFi. He also conjectured that individuals might begin transferring funds to self-custody wallets and exchanging USDT for RLUSD.

Consequently, users would be able to utilize RLUSD as leverage to purchase XRP and other assets via decentralized exchanges (DEXs). Van Code went on to say that buying LP tokens for a 5-6% return would be better than keeping XRP or RLUSD alone because using both assets together would yield higher profits.

As centralized exchanges’ liquidity declines, he contended, this might raise demand for XRP and put price-suppressing bots and market makers to the test. By February, Van Code expects this change to occur.

XRPL Validator Raises Concerns Over RLUSD’s Impact

Van Code’s positive perspective was met with a number of concerns by XRPL validator Vet, who also pointed out the challenges to this goal. Vet began by pointing out that RLUSD is not currently able to take part in AMM pools on the XRPL. His arguments raised pertinent questions about how will RLUSD affect XRP and whether the hype surrounding its launch can sustain momentum in the long term.

Additionally, he pointed out that returns are not guaranteed and that there is no guarantee of achieving a particular yield in an AMM pool with RLUSD. Vet further underlined that AMMs have a risk of temporary loss.

Moreover, he explained that an AMM pool that removes counterparty risk will never exist on the XRPL. Further, Vet emphasized that XRPL is not a unique solution because it lacks a native staking feature and dealing with counterparty risk while staking on exchanges.

On the market right now, XRP is worth $2.42, with a 24-hour trading volume of approximately $10.6 billion USD. XRP has seen a slight increase of 0.06% in the last 24 hours. As of now, it holds the #4 spot on CoinMarketCap, with a market capitalization of $138.3 billion USD. The circulating supply stands at 57.1 billion XRP coins, with a total maximum supply of 100 billion XRP coins.

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