Santiment: RLUSD growth does not ensure XRP price increase

On-chain analytics firm Santiment stated that the growth of Ripple's stablecoin RLUSD does not guarantee an increase in XRP's price. Santiment observed that while XRP's price declined, RLUSD's market capitalization rose significantly. The firm noted that if financial institutions actively utilize RLUSD on the XRP Ledger, it could lead to increased transaction counts and liquidity, potentially supporting XRP. However, RLUSD can also be used on other blockchains, meaning its growth might not necessarily drive demand for XRP. Santiment highlighted that a small amount of XRP is burned with each transaction on the XRP Ledger, but this is unlikely to significantly impact the price. The crucial factor remains whether financial institutions will enhance their actual usage of the XRP Ledger. Additionally, Standard Chartered recently launched RLUSD custody services for institutions through its Dubai International Financial Centre branch.

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