Citi Group’s April 2025 report “Digital Dollars” noted that the stablecoin market could grow to be a $1.6 trillion sector. If Ripple’s RLUSD captures even a meagre 10% of the $1.6 trillion stablecoin market, how will it impact XRP price?
Despite Ripple being a new entrant to the stablecoin sector, RLUSD market capitalization has grown to a staggering $300 million since its launch in December 2024. XRP token is a bridge currency that helps transfer value from RLUSD to another currency like the US dollar, Yen, Euro, etc. Hence, if RLUSD manages to capture 10% of $1.6 trillion, aka, $160 billion, it could most definitely have a positive impact on XRP price.
Ripple price today trades around $2.16, dropping 5.2% in the past 24 hours.
XRP Price Reaction if Ripple’s RLUSD Captures 10% of $1.6 Trillion Stablecoin Market?
Citigroup, a top American bank, published a report on how the stablecoin market could grow to be a $1.6 trillion sector by 2030. This estimate is a 556% surge from the current level of $244 billion. The current stablecoin market is dominated by the likes of Tether (USDT) and USD Coin (USDC), which are likely to maintain their dominance. However, newer stablecoins like Ripple USD (RLUSD) could gain ground after Trump’s endorsement of USA cryptocurrencies. Although RLUSD was launched in December, it has already hit $300 million in market cap.
Unlike USDT, USDC and other stablecoins, the connection between XRP & RLUSD is something interesting. XRP is used as a bridge currency when a user wants to send RLUSD across borders, which will include conversion of RLUSD to XRP and XRP to the required currency, like EUR, GBP, YEN, and so on.
To be precise, if RLUSD market cap hits $160 billion, a 53,000% increase from the current level of $300 million, its daily volume would also spike from $50 million to roughly $26 billion. Let’s assume three scenarios to determine the price impact on XRP.
- If 10% of the daily RLUSD volume is bridged via XRP: The token’s volume would triple to $4.5 billion from an average of $1.5 billion. The impact of this could push XRP price up between 50% to 200%, i.e., XRP price could hit $3.24 to $6.48.
- If 25% of RLUSD volume is bridged via XRP: The token’s volume would hit $8 billion per day and XRP price could shoot up to a range of $6.48 to $10.80.
- If 50% of RLUSD volume is bridged via XRP: XRP’s daily volume could reach a staggering $15 billion. In such a case, the FOMO and frenzy could cause XRP price to hit $10.80 to $21.60.
To conclude, if Ripple’s RLUSD captures 10% of the $1.6 trillion stablecoin market, it could push the XRP price to reach $6 to $12. The token could reach the $12 to $20 range in a highly bullish case.
Such an increase would impact the Ripple price in various ways. First, it would help Ripple to achieve its goal of taking market share from the SWIFT network. Second, it would also boost the network activity and fees of the XRP Ledger network. Further, the RLUSD growth would help to boost the XRP price and the burn rate, and boost its deflationary goals since part of the fees are incinerated
Ripple Price Short-Term Prediction: Extremely Bullish Above $3.4
The long-term XRP price forecast is bullish, with some analysts predicting that it will rise as high as $15. The growth of its ecosystem, especially RLUSD, will help to supercharge this growth.
The weekly chart paints a long-term bullish outlook for Ripple. It formed a cup-and-handle-like chart pattern with the upper side at $1.9822. It has retested the upper side of this pattern, pointing to a continuation ahead.
XRP has remained above the 50-week moving average, which has provided crucial support in the past few months. Therefore, although it’s too early to predict, there is a likelihood that the coin will continue to soar in the near term. Further gains will be confirmed if the coin rises above its year-to-date high of $3.40. Such a move will boost the XRP price forecast to $5.
A drop below the key support at $1.6075 will invalidate the bullish view of Ripple price. This invalidation point is the lowest level this week and also along the 50-week moving average. A drop below that level will point to more downside, potentially to $1.
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