XRP has surged 38% in just two weeks following confusion about its competition with Circle and the stablecoin USDC.
Ripple’s actual stablecoin challenger is RLUSD, a separate asset designed to compete directly with USDC, not XRP.
Crypto attorney John Deaton clarified that XRP’s function is confined to the XRP Ledger and is unrelated to the stablecoin market rivalry.
XRP’s recent 38% rally stems from market confusion over its competition with Circle’s USDC, clarified by Ripple’s focus on RLUSD stablecoin.
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The recent price action in XRP has sparked renewed interest and debate about Ripple’s role in the fintech and stablecoin sectors. It is critical to distinguish between XRP as a digital asset and Ripple as a company. While Ripple leverages XRP for certain cross-border payment solutions, it does not position XRP as a stablecoin competitor. Instead, Ripple’s strategic entry into the stablecoin market is through RLUSD, a newly launched asset aimed at challenging Circle’s USDC dominance. This separation ensures XRP remains focused on liquidity and settlement within the XRP Ledger ecosystem, while RLUSD targets the stablecoin niche.
John Deaton, a respected crypto lawyer, provided essential clarity amid widespread misconceptions. He emphasized that XRP’s role is limited to facilitating transactions on the XRP Ledger and is not designed to compete with stablecoins like USDC. Deaton also highlighted Ripple’s broader fintech ambitions, which include developing infrastructure solutions that overlap with Circle’s market but do not directly pit XRP against USDC. This nuanced understanding is vital for investors to accurately assess XRP’s value proposition and Ripple’s market strategy.
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Source: https://en.coinotag.com/xrp-surges-38-amid-confusion-over-ripples-stablecoin-competition-with-circle/