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Ripple Launches RLUSD and DeFi Features, Yet XRP Stuck at $0.50

Ripple XRP COIN

Ripple, the company behind the cryptocurrency XRP, has recently made significant announcements regarding its advancements in the stablecoin market and decentralized finance (DeFi). Despite these major updates, the price of XRP has remained relatively unchanged, hovering around $0.50. This stagnation has raised questions about Ripple’s influence on XRP’s value and its status as a security.

Ripple’s Major Announcements and XRP’s Lack of Response

Ripple has been quite active recently, making several strategic business moves aimed at enhancing the XRP ecosystem. One of the most notable developments is Ripple’s entry into the stablecoin market with the launch of RLUSD, a US-pegged token. Additionally, Ripple has announced plans to integrate smart contracts into the XRP Ledger (XRPL), making the ecosystem more DeFi-friendly.

Brad Garlinghouse, Ripple’s CEO, elaborated on these developments during the Korea Blockchain Week in Seoul. He stated that the company would launch RLUSD within weeks, not months. However, despite these promising advancements, XRP’s price has shown little to no movement. This lack of price reaction has led to speculation about the real impact of Ripple’s efforts on XRP’s value.

Attorney Bill Morgan shared his observations on this development, questioning why these significant milestones have not impacted XRP’s price. He suggested that Ripple’s actions might not be sufficient to influence XRP’s value significantly, especially given the ongoing legal battle with the SEC. The SEC has alleged that XRP is a security based on investor profit expectations from Ripple’s efforts.

Morgan noted, “In terms of the Howey test, not only would I question whether an investor in XRP could possibly have a reasonable expectation of profits holding XRP from Ripple’s efforts after the last several years, but I would question if such an expectation is rational.” He emphasized that XRP’s price movements are more influenced by broader market trends and the decentralized nature of the XRPL rather than Ripple’s direct actions.

Increase in Ripple XRP Whale Activity Signals Potential Market Move

Despite the stagnant price movement, XRP whales have been notably active. Whale Alert recently detected a massive transfer of 105,481,561 XRP, valued at $58,216,178, between two unknown wallets. Additionally, two other large transfers involving 20,600,000 XRP and 30,360,000 XRP, worth over $28 million, were recorded in the past 24 hours, both deposited into major exchanges, Bitso and Bitstamp.

The spike in whale activity could indicate a potential market shift for XRP. Significant whale transactions often hint at upcoming price movements due to the large volumes involved. For XRP holders, this increased whale activity could be a sign of potential bullish movements. If whale actions lead to higher demand or further institutional involvement, XRP’s price could see a rise.

Currently, XRP trades at $0.55, down 1.46% over the past 24 hours. It has a market cap of $30.94 billion and remains above its support level at $0.54, providing hope for a recovery soon.

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