Ripple and the advancement of its entire ecosystem remain among the top-trending topics in the cryptocurrency space. In the following lines, we will touch upon the latest developments and analyze the performance of its native token.
The ETF Craze
Nearly a month ago, Canary Capital became the first company to introduce a spot XRP exchange-traded fund (ETF) in the United States that has 100% exposure to the asset. Shortly after, Bitwise, Franklin Templeton, and Grayscale followed suit.
21Shares was rumored to hop on the bandwagon last week, but its official start was delayed. Some X users revealed that the firm has submitted its fifth amendment to its S-1, bringing the product one step closer to a potential launch in the coming days.
The spot ETFs have generated significant interest among investors. According to data provided by SoSoValue, the cumulative total net flow into these products has reached almost $950 million. Canary Capital’s fund comprises $371 million of the figure, whereas Grayscale’s GXRP ranks second with $213 million.
RLUSD’s Progress
Ripple launched its stablecoin, called RLUSD, nearly a year ago. It is pegged 1:1 to the American dollar and, over the past several months, has received support from numerous exchanges and even banking giants, including the oldest US bank, BNY Mellon.
In November, Ripple disclosed that Abu Dhabi’s Financial Services Regulatory Authority (FSRA) had recognized the product as an accepted fiat-referenced token. This marks RLUSD’s expansion in the Middle East, since prior to that, it received similar backing from the Dubai Financial Services Authority (DFSA).
Meanwhile, the asset’s market capitalization has surged to almost $1.3 billion, making it the 84th-largest cryptocurrency. However, RLUSD remains an insignificant player in the stablecoin sector, which is dominated by Tether’s USDT and Circle’s USDC.
XRP Price Outlook
Ripple’s native cryptocurrency currently trades at around $2.06, meaning a 5% decline on a weekly scale. And while the bulls hope for a short-term resurgence, the recent whale activity suggests a further downtrend might be on the way.
As CryptoPotato reported, large investors offloaded more than 500 million XRP (worth over $1 billion) in the span of a single week. This development increases the available supply and could result in a price decline (assuming demand doesn’t keep pace). Additionally, it may cause panic and prompt smaller players to sell as well.