The XRP token has emerged as one of the top performers in the cryptocurrency market, soaring over 12.5% in the past 24 hours, according to data from CoinGecko. Currently ranking among the top three best-performing assets within the top 100 cryptocurrencies by market capitalization, XRP's rally is closely tied to Ripple’s strategic move into the stablecoin space with the launch of RLUSD—a U.S. dollar-pegged stablecoin built on the XRP Ledger (XRPL).
This development is not just a product expansion—it signals a deeper integration between Ripple’s ecosystem and its native cryptocurrency, reinforcing investor confidence and triggering renewed market momentum.
Ripple’s RLUSD: A Game-Changer for the XRP Ecosystem
Ripple has officially launched RLUSD, a regulated, dollar-backed stablecoin issued directly on the XRP Ledger blockchain. Unlike third-party stablecoins, RLUSD is developed and managed by Ripple itself, following regulatory approval in the United States. Its deployment on XRPL strengthens the utility of the underlying network and creates a direct economic relationship with XRP.
One of the most impactful aspects of RLUSD is its transaction mechanism: each transaction involving RLUSD results in the burning (permanent removal) of a small amount of XRP to cover network fees. This deflationary design reduces the overall circulating supply of XRP over time, potentially increasing its scarcity and long-term value.
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Why Burning XRP Matters
The concept of token burning isn't new in crypto, but its integration into everyday transactions marks a pivotal shift. As RLUSD adoption grows, so does the volume of XRP burned. Even if each burn is minimal, cumulative effects could become significant—especially during periods of high transaction activity.
Analysts believe this structural change could shift investor perception from viewing XRP as merely a payment token to recognizing it as a deflationary digital asset with embedded economic incentives.
Alex Obchakevich, founder of Obchakevich Research, noted that the RLUSD launch plays a crucial role in XRP’s recent price surge. He predicts RLUSD could enter the top 100 cryptocurrencies by market cap within days, further amplifying demand for the XRP Ledger and its native token.
Synergy Between RLUSD and XRP: A Mutual Growth Engine
Adam O’Neill, CMO of Bitrue exchange, emphasized the symbiotic relationship between RLUSD and XRP:
“Every RLUSD transaction burns a fraction of XRP as a fee. Over time, this increases scarcity and can translate into higher prices. The success of both assets is now interlinked—and investors are starting to realize it.”
This linkage creates a positive feedback loop:
- Increased use of RLUSD → More transactions on XRPL → More XRP burned → Reduced supply → Upward price pressure on XRP
- Rising XRP value → Greater network security and credibility → More institutional interest in RLUSD → Expanded adoption
Such mechanics align with broader trends in Web3, where protocol-level value accrual is becoming a key metric for sustainable growth.
XRP’s Strong Momentum Before RLUSD Launch
Even prior to RLUSD’s release, XRP had already demonstrated strong performance in the second half of 2025. In recent weeks, it surged past major competitors like USDT and SOL, briefly claiming the title of the third-largest cryptocurrency by market capitalization—a testament to growing institutional and retail interest.
This momentum was fueled by several factors:
- Positive regulatory outlook: Following shifts in U.S. financial policy, expectations have risen for clearer crypto regulations.
- ETF speculation: Market participants anticipate potential approval of a spot XRP ETF in the U.S., similar to those approved for Bitcoin and Ethereum.
- Institutional adoption: Financial institutions are increasingly exploring XRPL for cross-border payments due to its speed, low cost, and scalability.
Brenda Jin, CEO of Ripple, recently stated that an XRP ETF is “inevitable,” citing increasing clarity from regulators and growing demand from asset managers.
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Regulatory Winds Shift in Favor of Innovation
The broader regulatory environment has played a subtle yet powerful role in boosting sentiment around XRP. With evolving U.S. policies showing greater openness to digital asset innovation, many investors view this as a turning point for previously embattled projects like Ripple.
After years of legal uncertainty surrounding whether XRP qualifies as a security, recent developments suggest regulators are moving toward a more balanced framework—one that supports innovation while protecting investors.
This improved climate enhances the viability of financial products such as:
- Spot and futures trading
- Exchange-traded funds (ETFs)
- Tokenized money market funds using RLUSD
- Institutional custody solutions
As compliance becomes more achievable, traditional finance players are more willing to engage with blockchain-based assets.
Frequently Asked Questions (FAQ)
Q: What is RLUSD?
A: RLUSD is Ripple’s U.S. dollar-pegged stablecoin, issued on the XRP Ledger. It’s fully backed by reserves and designed for fast, low-cost global transactions.
Q: How does RLUSD affect XRP’s price?
A: Every RLUSD transaction burns a small amount of XRP as a fee. Over time, this reduces supply and may increase scarcity, potentially supporting higher prices.
Q: Is RLUSD available globally?
A: Yes, but availability may vary based on local regulations. It’s currently accessible through supported exchanges and wallets integrated with XRPL.
Q: Could an XRP ETF be approved soon?
A: While no official approval has been granted yet, growing regulatory clarity and institutional interest make an ETF filing increasingly likely in 2025–2026.
Q: Where can I buy RLUSD or XRP?
A: Both assets are available on major cryptocurrency exchanges that support XRPL-based tokens.
Q: Does burning XRP make it deflationary?
A: Technically, yes. While new XRP isn’t mined or minted frequently, consistent burning through transactions can create net deflation if burn rates exceed issuance or unlock schedules.
The Road Ahead: Building Utility and Trust
Ripple’s launch of RLUSD represents more than just entering the $150 billion stablecoin market—it's about deepening the utility of the XRP Ledger and creating sustainable economic models that benefit all participants.
With real-world use cases expanding—from remittances and trade finance to decentralized finance (DeFi) and central bank digital currency (CBDC) pilots—XRPL is positioning itself as a foundational layer for future financial infrastructure.
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As adoption grows and ecosystem activity increases, metrics like daily active addresses, transaction volume, and cross-border settlement rates will become key indicators of long-term success.
For investors, the message is clear: XRP is no longer just a speculative asset—it’s evolving into a core component of a scalable, compliant, and economically sound blockchain ecosystem.
By combining regulatory progress, technological innovation, and strategic tokenomics, Ripple is laying the groundwork for sustained relevance in the next era of digital finance.
Core Keywords: XRP, RLUSD, Ripple, stablecoin, XRP Ledger, cryptocurrency, token burning, ETF