- RLUSD’s rapid growth and GENIUS Act support may propel Ripple into dominance.
- Capturing 50% of Tether’s market cap could push XRP above $4 amid strong demand.
- Technical indicators show bullish momentum, reinforcing XRP’s breakout potential.
The Stablecoin GENIUS Act is anticipated for a U.S. Senate vote next week. Market analysts suggest this development could become a game-changer for Ripple’s ecosystem, especially its stablecoin RLUSD. This legislative action, according to the analysis outlined in the report, may create significant benefits for RLUSD, potentially allowing it to take a large share of the global stablecoin market.
If RLUSD reaches 50% of Tether’s current $150 billion market cap, the implications for XRP could be transformative. A surge in RLUSD adoption would not only solidify Ripple’s position in the digital payments space but also provide the momentum needed to push XRP to new all-time highs.
RLUSD Adoption Could Strengthen Ripple’s Utility
RLUSD trades close to $1 with a market cap of $331 million. Over the past five months, its value has multiplied sixfold. This growth pace, if sustained or accelerated by regulatory clarity, could place RLUSD at the forefront of U.S.-backed stablecoins.
The GENIUS Act favors domestic stablecoins and aims to modernize outdated payment rails. With bipartisan support and regulatory approval, RLUSD is well-positioned to benefit from an exodus of capital from offshore-issued assets like Tether (USDT).
Related: Ripple’s $25M Gift in RLUSD Shows How Crypto Can Fund Education at Scale
If RLUSD captures even half of Tether’s dominance, that equates to a $75 billion market cap. Such an influx would deepen liquidity on Ripple’s network and increase transactional demand for XRP. This scenario could push XRP’s utility-driven price above $3 and possibly beyond $4, depending on broader market sentiment and retail participation.
XRP Technicals Point Toward a Bullish Setup
At press time, XRP is priced at $2.36, reflecting a slight daily decline. However, technical indicators suggest underlying strength. The MACD line is above the signal line, a positive momentum signal.
Additionally, the histogram remains in bullish territory. The RSI sits at 53, signaling neutral conditions but showing room for an upside move before hitting overbought levels.
Related: Ripple’s RLUSD Stablecoin Could Enter Top 5 by 2025, Says Analyst
Moreover, historical behavior supports optimism. In December 2024, XRP surged over 70% after RLUSD secured regulatory approval. If RLUSD gains traction as a mainstream payment option across the U.S., a similar or greater rally is conceivable.
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