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MediaRipple Stablecoin, Not the End for XRP Says Top Crypto Experts
The post Ripple Stablecoin, Not the End for XRP Says Top Crypto Experts appeared first on Coinpedia Fintech News
The news of Ripple’s upcoming launch a USD-backed stablecoin, has raised concerns about the future of XRP, the native cryptocurrency of the XRP Ledger. Meanwhile, some fear that the stablecoin could overshadow its role within the ecosystem. However, a prominent crypto researcher Krippenreiter has argued that XRP’s unique attributes and utility will remain intact despite the introduction of the stablecoin.
How Stabecloin Differs From XRP
Addressing these concerns, Krippenreiter explained that while stablecoins and XRP serve distinct purposes, they coexist within the crypto ecosystem.
[1/
— Krippenreiter (@krippenreiter) April 5, 2024] @Ripple announced today that they will introduce a new stablecoin pegged 1:1 to the US dollar.
Does this imply that XRP is doomed?
Let's learn together to fully understand the bigger picture.pic.twitter.com/NjvkdYCPDK
Unlike stablecoins, which maintain a stable value pegged to real-world assets like the US dollar, inherently rely on issuers, institutions, or specific jurisdictions. While, XRP operates as a globally neutral token on the XRP Ledger, reducing counterparty risks and offering transparency through its transparent ledger.
Moreover, while stablecoins face fragmentation across different platforms and chains, XRP remains a singular currency on the XRPL with its built-in decentralized exchange (DEX).
Additionally, Krippenreiter underscored the growing trend of de-dollarization, suggesting that stablecoins tied to the US dollar could face challenges if trust in the dollar diminishes.
Furthermore, XRP’s independence and adaptability distinguish it from stablecoins, which are subject to rules set by their issuers. Unlike stablecoins, changes in XRP’s supply require consensus among participants on the XRP Ledger, ensuring transparency and decentralization.
Not the End for XRP
Despite concerns, Krippenreiter believes that XRP will maintain its prominence in the crypto space. He pointed out the substantial size of the stablecoin market, which dominates 51% of the Ethereum network and decentralized exchanges.
Given stablecoins’ growing dominance in the crypto space, Krippenreiter believes Ripple’s stablecoin project could record success. He believes the new XRPL AMM functionality would lead to the launch of AMM with currency pairs involving XRP and the Ripple stablecoin.
Ripple’s Delay in Liquid Stablecoin
Mr. Huber, an on-chain analyst, had previously questioned Ripple’s delay in introducing a liquid stablecoin on the XRPL despite years of network development. Some speculated that Ripple’s decision to continue leveraging XRP for cross-border settlements hinted at its long-term commitment to the digital asset.
By the way, this is an absolutely legitimate question: Why hasn't Ripple managed to bring a liquid stablecoin to the XRPL in 10 years? Because Ripple sees private stablecoins as a competing technology and is fully committed to establish XRP as a bridge currency between state… https://t.co/tJpLsqjqXu
— Mr. Huber(@Leerzeit) February 13, 2024
However, Krippenreiter believes that the introduction of a Ripple stablecoin does not necessarily signal the end for XRP. He emphasized the fundamental differences between stablecoins and XRP, highlighting unique features that set XRP apart.
Ripple Stablecoin, Not the End for XRP Says Top Crypto Experts
The post Ripple Stablecoin, Not the End for XRP Says Top Crypto Experts appeared first on Coinpedia Fintech News
The news of Ripple’s upcoming launch a USD-backed stablecoin, has raised concerns about the future of XRP, the native cryptocurrency of the XRP Ledger. Meanwhile, some fear that the stablecoin could overshadow its role within the ecosystem. However, a prominent crypto researcher Krippenreiter has argued that XRP’s unique attributes and utility will remain intact despite the introduction of the stablecoin.
How Stabecloin Differs From XRP
Addressing these concerns, Krippenreiter explained that while stablecoins and XRP serve distinct purposes, they coexist within the crypto ecosystem.
[1/
— Krippenreiter (@krippenreiter) April 5, 2024
Let's learn together to fully understand the bigger picture.
Unlike stablecoins, which maintain a stable value pegged to real-world assets like the US dollar, inherently rely on issuers, institutions, or specific jurisdictions. While, XRP operates as a globally neutral token on the XRP Ledger, reducing counterparty risks and offering transparency through its transparent ledger.
Moreover, while stablecoins face fragmentation across different platforms and chains, XRP remains a singular currency on the XRPL with its built-in decentralized exchange (DEX).
Additionally, Krippenreiter underscored the growing trend of de-dollarization, suggesting that stablecoins tied to the US dollar could face challenges if trust in the dollar diminishes.
Furthermore, XRP’s independence and adaptability distinguish it from stablecoins, which are subject to rules set by their issuers. Unlike stablecoins, changes in XRP’s supply require consensus among participants on the XRP Ledger, ensuring transparency and decentralization.
Not the End for XRP
Despite concerns, Krippenreiter believes that XRP will maintain its prominence in the crypto space. He pointed out the substantial size of the stablecoin market, which dominates 51% of the Ethereum network and decentralized exchanges.
Given stablecoins’ growing dominance in the crypto space, Krippenreiter believes Ripple’s stablecoin project could record success. He believes the new XRPL AMM functionality would lead to the launch of AMM with currency pairs involving XRP and the Ripple stablecoin.
Ripple’s Delay in Liquid Stablecoin
Mr. Huber, an on-chain analyst, had previously questioned Ripple’s delay in introducing a liquid stablecoin on the XRPL despite years of network development. Some speculated that Ripple’s decision to continue leveraging XRP for cross-border settlements hinted at its long-term commitment to the digital asset.
By the way, this is an absolutely legitimate question: Why hasn't Ripple managed to bring a liquid stablecoin to the XRPL in 10 years? Because Ripple sees private stablecoins as a competing technology and is fully committed to establish XRP as a bridge currency between state… https://t.co/tJpLsqjqXu
— Mr. Huber
However, Krippenreiter believes that the introduction of a Ripple stablecoin does not necessarily signal the end for XRP. He emphasized the fundamental differences between stablecoins and XRP, highlighting unique features that set XRP apart.