Could Ripple’s Stablecoin Replace XRP in Payments?

!XRP trades near $1.01. Why Some Analysts Think RLUSD Could Hurt XRP

XRP trades near $1.01 as of this writing, down about 42% for the year despite legal and institutional developments that would typically support its price.
A crypto commentator argues that Ripple’s dollar-backed stablecoin, RLUSD, could reduce banks’ need to hold XRP itself during cross-border settlements.
XRP Ledger transaction volume has roughly tripled to about 3 million per day, though higher network activity does not necessarily translate into stronger demand for the token.

XRP trades near $1.01 as of this writing, according to Coinscipher’s live pricing, down 0.50% over the past 24 hours and roughly 42% for the year to date, according to figures cited by crypto commentator Fire Hustle’s Summer in a recent video.

That decline stands out because several developments over the same period, including the SEC dropping its appeals and new XRP funds launching in the US, would typically be read as bullish for the token.

A Stablecoin Doing the Job XRP Was Built For

The commentator’s argument centers on XRP’s original design as a bridge asset. A bank buys XRP in one currency market, transfers the value, then sells XRP into another currency, a process that has historically created direct buying pressure since XRP sits in the middle of that trade.

Ripple’s own dollar-backed stablecoin, RLUSD, could take over that same function, according to the video, without exposing banks to XRP’s price swings during the brief window a transfer takes to settle. Banks, the argument goes, would generally rather hold something that stays pegged to a dollar than an asset that can move several percent in either direction before a transaction clears.

This isn’t a story about XRP’s utility disappearing. It’s about whether the specific bridge currency role that has driven institutional demand for XRP gets replaced by a stablecoin Ripple itself controls.

More Transactions Do Not Always Mean More Demand

The video also points to a rise in daily XRP Ledger transactions, up to roughly 3 million from previous levels, as a sign the network is seeing more use. But higher transaction counts do not automatically translate into stronger token demand, since value can move through stablecoins or other assets on the same ledger without requiring XRP purchases along the way.

The commentator also cited seven US XRP funds attracting a combined $1.5 billion, though the video did not specify which funds, over what time period, or where that figure came from, so that particular claim should be treated as unverified pending a named source.

If banks and payment processors increasingly choose a stablecoin over a volatile bridge asset when both options are available, that decision could matter more for XRP’s long-term price than favorable legal outcomes or rising network activity on their own. Coinscipher covered XRP’s struggle to hold key support levels in earlier coverage this month, and the RLUSD question adds a structural angle to that ongoing price weakness worth watching alongside it.

Source: Fire Hustle’s Summer, YouTube commentary on XRP and RLUSD

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Written by

Eric Nkando

I’m Eric Nkando, a crypto and crypto tax enthusiast, with other extensive experiences in forex and stock markets. I believe crypto and blockchain are no longer alien topics and I’m here to help investors tackle emerging issues of taxation and prudential investment strategies. My approach? Delivering clear, insightful analysis on digital assets, market trends, and trading strategies, bridging complex technical concepts with practical investment perspectives. My work has been widely published on leading financial platforms such as Investing.com, FXLeaders, and The Distributed.

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