New data indicates that Ripple USD (RLUSD), the stablecoin issued by Ripple, has experienced a significant rise, with its market capitalization now approaching $1.3 billion. This surge has led to the conclusion that Ripple’s decision to launch RLUSD across multiple chains is the primary reason behind this achievement, and this strategy is being recommended to other companies.
Analysts have weighed in on this success. Wendy O. admitted that Ripple’s strategy of placing its stablecoin on both the XRP Ledger and Ethereum was a prudent decision. The analyst also urged other significant crypto initiatives to embrace this strategy, noting that the current industry is shifting its focus towards multi-chain adoption.
Wendy O’s remarks followed Token Terminal’s statement, which highlighted that RLUSD’s market cap surged to over $1.2 billion, further anticipating that additional increases would follow later.
Meanwhile, crypto lawyer Bill Morgan concurred with the analyst’s opinion, warning that crypto-related initiatives that disregard multi-chain designs will encounter challenges in the future.
Multi-Chain Adoption is Key for Crypto Initiatives
Ripple’s recent partnership with Gemini played a crucial role in pushing RLUSD to achieve an all-time high market cap of more than $1.2 billion. Sources with knowledge of the matter mentioned that this collaboration enabled the use of RLUSD card settlements. This upgrade illustrated how the stablecoin’s multi-chain setup paves the way for new payment choices.
Bearing this advantage in mind, Morgan cautioned that crypto platforms that ignore the need to extend beyond a single network could end up being outdated. His statement aligned with the growing belief that future tokenized assets and stablecoins are necessary to operate across multiple chains to remain competitive.
Morgan shared an X post dated December 7 under the username @Belisarius2020, acknowledging that Wendy O’s findings were a really acute observation. He elaborated on this observation, highlighting that individuals who fail to recognize the significance of a multi-chain future will get stuck and will not succeed in their operations.
When Ripple decided to introduce RLUSD on Ethereum, the move streamlined access to big pools of liquidity and DeFi platforms for its users. Reports revealed that RLUSD being on the XRP Ledger means that it processes transactions quickly, and its cost is affordable. Additionally, analysts mentioned that these factors contributed to RLUSD’s unexpected growth.
Ripple has not disclosed any updates concerning its next move for its stablecoin, but RLUSD’s escalating market cap demonstrated increasing interest in the stablecoin.
Another significant achievement for Ripple is that RLUSD has received approval for use in international markets, such as Abu Dhabi, demonstrating its growing recognition in regulated financial settings.
Ripple's CTO Focuses on XRPL Infrastructure Development
While RLUSD positions itself as one of the rapidly growing stablecoins, sources pointed out that cross-chain applications are increasingly becoming more common in the ecosystem. These sources further note that RLUSD’s growth underscores the importance of operating across various systems to achieve broader adoption of stablecoins.
This development came after David Schwartz, the Chief Technology Officer (CTO) at Ripple, began actively engaging with the XRP Ledger. His decision drew the interest of reporters who reached out to the company’s CTO for comment on the matter. Responding to this, Schwartz mentioned that the primary reason behind his establishment of the XRPL hub was to monitor the network’s operation closely.
He also acknowledged that he has not been part of the XRPL infrastructure for a few years, but he is looking forward to being directly engaged again. Moreover, Schwartz addressed issues regarding new delays with validators. According to him, a firm megahub can substantially reduce these delays and enhance the network’s reliability.
The XRP Ledger’s new MPT standard, applicable for tokenizing real-world assets, is among the tools chosen to aid in the development of the network. This change is crucial in enhancing the protocol’s capabilities and backing continual improvement to the infrastructure.
Concerning his goal to get involved with XRPL infrastructure, Schwartz explained the current challenges in this sector. He argued that certain situations impact some functions of XRPL, causing it to malfunction. Hence, the hub will help him develop solutions based on real data.