The digital asset market was pleasantly surprised at Ripple’s announcement of its intention to enter the stablecoin market, and as that market is projected to reach $3 trillion by 2028, XRP could be set to emerge as a significant beneficiary.
Ripple has already confirmed that its stablecoin offering will make its debut in June. However, many investors expressed concern over what this means for its XRP token. With the vitality of XRP in the Ripple Labs network, the rise of a stablecoin could only act as a benefit to the cryptocurrency.
Also Read: Ripple Analyst Forecasts XRP To Hit $1 If This Happens
Ripple Stablecoin Could Fuel XRP Growth
Stablecoins have undoubtedly emerged as one of the most important sectors of the digital asset market. Backed by fiat currencies and other assets, they have been lauded for their safety. Moreover, the industry is poised to have a new participant issued by cross-border juggernaut Ripple.
That could be set to greatly benefit the company as Ripple is set to enter a stablecoin market eyeing $3 trillion by 2028, with its XRP token to be greatly impacted by that. Although some investors are worried about a stablecoin ushering XRP away, the opposite may well be true.
Over the last 24 hours, Ripple has struggled. Its price has dropped more than 2.8%, according to CoinMarketCap. Subsequently, the asset has faced a correction that countered its positive performance since the start of May.
Also Read: Ripple (XRP) Price Prediction: Mid-May 2024
With the SEC lawsuit ongoing, XRP has failed to gather any momentum. It has struggled to break free from the $0.50 level and is currently close to reaching that support yet again. However, Ripple could change that, and it could do so through its stablecoin.
Ripple has recently released a statement exploring the benefits of stablecoins. Within that, it shared the $3 trillion evaluation of the sector. However, it coincides with a statement from Ripple CTO David Schwartz. Specifically, he discussed the massive necessity that XRP is for the overall Ripple vision.
If Ripple’s stablecoin only increases the company’s value and benefits the ecosystem, XRP would benefit the most. Indeed, its stated validity would drive the value of the token to new heights. Moreover, its arrival could be the catalyst for the price to regain some momentum. That is especially true with the SEC lawsuit not nearing a conclusion any time soon.