Ripple Postpones Stablecoin Launch, XRP Price Drops and Loses Third-Largest Cryptocurrency Position

Ripple, a leading player in the cryptocurrency space known for its cross-border payments, has announced a delay in the launch of its stablecoin, $RLUSD, pending final approval from the New York Department of Financial Services (NYDFS).

The news was shared on social media, stating,

$RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.

The company emphasized its commitment to launching under the supervision of the NYDFS and upholding the highest regulatory standards.

XRP Price Drops Following Stablecoin Launch Delay

The announcement coincided with a noticeable decline in Ripple’s native token, XRP, which saw its market price drop from $2.59 to $2.31 within 24 hours. This sharp decline pushed XRP away from its position as the third-largest cryptocurrency by market capitalization, falling short of Tether’s (USDT) market cap of $135.8 billion.

XRP Market Cap and Trading Volume Plummet

At press time, XRP’s market cap stands at $131.42 billion, a 12% drop seen in the last 24 hours. The 24-hour trading volume also plummeted to $26.02 billion, nearly 40% down from yesterday. Additionally, XRP futures trading volume dropped sharply to below $16 billion on December 4, 2024, accompanied by a declining price trend, highlighting reduced market activity.

What’s Next for XRP?

The price of XRP could be influenced by the surge in stablecoins in the market, with a 24-hour volume of $317.13 billion. Ripple’s success with its stablecoin is key to enhancing its On-Demand Liquidity platform, which facilitates swift cross-border payments and could drive XRP prices higher.

XRP Price Analysis

As a measure of XRP’s recent price action, Bollinger Bands can show where the price is and where it might be headed next. The narrowing of the bands implies diminished volatility, with market participants looking for either a breakout or breakdown to decide the next major XRP price move.

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