Analysis: RLUSD Growth Doesn’t Necessarily Lead to Higher XRP Prices

Ripple’s dollar-based stablecoin RLUSD is growing rapidly, but that momentum does not automatically translate into gains for XRP, according to an analysis.

On-chain analytics firm Santiment said on October 12 that XRP fell even as RLUSD’s market capitalization rose sharply. RLUSD is a stablecoin designed to maintain a 1:1 value with the US dollar, while XRP is the native asset of the XRP Ledger, or XRPL, and its price moves with market supply and demand. Because the two assets have not moved in tandem, Santiment said RLUSD’s growth alone is not enough to justify expectations of an XRP rally.

The firm added that broader use of RLUSD could still benefit the XRP ecosystem over the long term. If banks, institutional investors and trading firms begin using RLUSD on the XRPL, network transaction volume and liquidity could increase. That, in turn, could help expand XRPL-based services and attract more institutional participation, boosting XRP’s utility.

Santiment also assessed the fee-burning effect on XRP as limited. A small amount of XRP is burned as a transaction fee whenever activity occurs on the XRPL, but the amount destroyed in each transaction is so minor that even a sharp increase in RLUSD transfers would be unlikely to have a large direct impact on price. What matters more, it said, is whether real economic activity expands, including XRP’s use as a bridge asset connecting different currencies and assets.

At the same time, Santiment said RLUSD’s success does not necessarily imply stronger demand for XRP. RLUSD can be used on blockchains beyond the XRPL, meaning the benefits of network growth may not be concentrated in XRP. Financial institutions could also use RLUSD for payments or collateral purposes without directly purchasing XRP. Standard Chartered’s custody service for RLUSD is already operating, but integration with LMAX’s collateral system has not yet been completed.

Santiment said the development is meaningful because it shows the boundary between digital-asset markets and traditional finance is gradually fading. While RLUSD is expanding its role in areas such as institutional custody and trading collateral, its actual impact on XRP’s price will depend on whether network usage and institutional demand materially increase.