Ripple’s RLUSD has also experienced rapid growth, and the company’s market cap has reached $1.3 billion.
This growth is largely attributed to the multi-chain release of Ripple on the XRP ledger and Ethereum, according to the analysts who track trends in stablecoins.
Multi-chain rollout increases the use of RLUSD
According to analysts, RLUSD’s expansion across multiple networks has helped it to consolidate its presence in the stablecoin market. Commentator Wendy O wrote that Ripple made a wise decision by depositing the asset on the XRP Ledger and Ethereum. She continued to suggest that significant crypto initiatives should adopt similar designs as the sector will move towards multi-chain integration.
This opinion was supported after Token Terminal announced that RLUSD had passed the $1.2 billion threshold and could generate additional profits. This was reiterated by crypto lawyer Bill Morgan, who cautioned that in the future, platforms that do not adopt multi-chain structures might be constrained in their operations.
Partnerships help in increasing market demand
The recent Ripple collaboration with Gemini helped propel RLUSD to another all-time high in market value. Those familiar with the alliance indicated that the partnership allowed RLUSD card settlements. They further added that this feature demonstrates that its multi-chain structure can open up additional payment opportunities.
Morgan observed that those projects with a single network run the risk of falling behind as tokenized assets are opened to broader markets. His comments followed an online commentary in which he agreed with Wendy O and warned that ruling out a multi-chain future would not help in the long-term progress.
Ripple’s shift to Ethereum, intended to introduce RLUSD to the network, enabled greater liquidity and significant DeFi initiatives. Analysts also claimed that the XRP Ledger continues to provide rapid processing and low cost. These features have aided greater adoption and have contributed to the recent growth in the RLUSD market. This has also led to RLUSD being approved in other regions such as Abu Dhabi. This is a pointer to increased acceptance in controlled financial conditions.
Ripple CTO wants to be directly involved in XRPL infrastructure
Ripple CTO, David Schwartz, has been more involved in developing the technical side of the XRP Ledger. He confirmed that he developed an XRPL hub to monitor network activity and address recurring infrastructure problems. Schwartz claimed that it has not been a layer he has worked with closely in recent years, and he wants to encourage direct improvements now. He also made observations that validator delays are problematic. He thinks that reducing these delays and achieving overall reliability can be done by a stable megahub.
The new MPT standard on the XRP Ledger should also facilitate future tokenization activities and improve the protocol. According to Schwartz, the hub will help him correct errors using actual data and make new upgrades.
The speed in RLUSD is a sign of increased belief in multi-chain strategies. The future of Ripple in the stablecoin market remains dependent on its current technical efforts and its international growth and development.
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