Ripple's Dollar Stablecoin Push Raises Concerns for XRP Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Yahoo Finance
- Market Demand Dilemma: Despite XRP's nearly 40% decline from its July peak, Ripple's business momentum has not translated into greater demand for XRP as an investable asset, indicating a challenge to market confidence in XRP.
- Stablecoin Impact: Ripple's conditional approval for a national bank charter to launch RLUSD, a dollar-backed stablecoin, could replace XRP as the primary bridge asset for cross-border transactions, potentially undermining XRP's market position.
- Decoupling of Tech Adoption and XRP: While RippleNet adoption is increasing, banks can enjoy faster payments and lower costs without using XRP, raising questions about the investment thesis that more banking adoption would lead to higher XRP demand.
- Investment Caution: Before considering an investment in XRP, investors should note that the Motley Fool's analysts have identified 10 stocks with greater potential, excluding XRP, reflecting a cautious outlook on its future performance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
