RLUSD stablecoin launch to drive XRP demand surge in 2025, Axelar co-founder reveals

XRP, the cryptocurrency underpinning the XRP Ledger (XRPL), continues to ride a wave of momentum as 2025 approaches.

Following its historic rally to $2.90 in December 2024, XRP's demand is set to increase further with the introduction of RLUSD, a dollar-pegged stablecoin approved by the New York Department of Financial Services (NYDFS). Georgios Vlachos, co-founder of Axelar, an interoperability platform, highlighted that RLUSD transactions and remittances will primarily utilize the XRPL and XRP-EVM sidechain.

Stablecoin transactions on these platforms require XRP for gas fees, leading to a direct increase in demand for the token. "You burn some XRP every time you do a transaction," Vlachos noted, emphasizing the deflationary impact on XRP supply. With its maximum token supply capped at 100 billion and approximately 57 billion currently circulating, XRP’s scarcity could intensify as usage grows.

Catalysts driving XRP growth

XRP recent price surge has been fueled by several catalysts. President-elect Donald Trump’s pro-crypto rhetoric and promises of regulatory clarity for the industry have invigorated investor sentiment. This political tailwind coincides with increased institutional interest; multiple asset management firms, including WisdomTree and Bitwise, have filed applications for XRP-focused exchange-traded funds (ETFs). If approved, these ETFs could significantly enhance XRP liquidity and adoption.

Additionally, XRP has solidified its position among top cryptocurrencies. On Dec. 1, it surpassed Solana in market capitalization, becoming the fourth-largest cryptocurrency, with a current market cap of approximately $138 billion, trailing Tether by less than $2 billion.

The launch of RLUSD and growing regulatory clarity signal a transformative year ahead for XRP. Its integration with remittance and transaction platforms positions it as a critical player in global payments. However, sustaining its upward trajectory will require navigating potential overbought conditions and ensuring broad adoption of its ecosystem. As 2025 unfolds, XRP stands poised to capitalize on the evolving crypto landscape.

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