Ripple’s newly introduced stablecoin, RLUSD, is generating buzz across the crypto space, but not all of it is positive. Set to launch on both Ethereum and the XRP Ledger, RLUSD is raising concerns within the XRP community. According to Stellar Expert, the multi-chain strategy could introduce significant risks for XRP holders, potentially undermining the token’s relevance in Ripple’s ecosystem.
Ripple is counting on stablecoin as a primary factor in its expansion in digital asset payments and blockchain finance. All the same, the fact that RLUSD uses similar methods to XRP has made some think that it could compete instead of complementing XRP.
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Community Concerns Over RLUSD’s Impact on XRP Utility
Analysts and members of the community are asking about RLUSD’s future impact as it is about to be introduced. RLUSD offers stability and dependability for handling transactions on other blockchains. While the move lines up with Ripple’s main goals, it could potentially bump XRP out of its primary roles.
For a long time, Ripple has relied on XRP to facilitate payments that cross international borders. Because RLUSD is stable and tied to the dollar, it may suit the needs of institutions better. If new companies start using RLUSD for what was once XRP’s main field of quick liquidity and speedy settlements, XRP could feel pressure on its market share.
With this choice, there is a chance more people will adopt XRP wallets, yet it also raises some doubts about what lies ahead for the XRP Ledger. Experts fear that if RLUSD becomes Ripple’s leading asset, XRP might lose some of its value and weight in the cryptocurrency industry.
The two-chain structure of RLUSD may divert the liquidity that was left in the XRP chain. This change might influence the way markets operate, mainly if investors choose RLUSD for its lack of volatility and its ability to collaborate with different blockchains.
Conclusion
The RLUSD is meant to build on Ripple’s available products, but it may also play a part in tasks covered by XRP already. As the surge of RLUSD draws closer, people are eager to know where Ripple plans to fit in the current system. Upcoming decisions could decide whether XRP continues to be essential or gets eclipsed by Stablecoin XRP.
