Ripple and Chainlink Partnership Fails to Prevent XRP and LINK Tokens from Suddenly Declining

The world of crypto is evolving at a breakneck pace. Even the most promising collaborations do not always guarantee an immediate price increase.

The cryptocurrency market continues to evolve rapidly, and even major collaborations don't always guarantee an immediate price pump. This is exactly what we observe with Ripple and Chainlink, whose partnership has not prevented their tokens, XRP and LINK, from suddenly declining.

A promising partnership around a new stablecoin

Recently, Ripple and Chainlink joined forces to accelerate the adoption of a new stablecoin called Ripple USD (RLUSD). The stated goal? To deploy a robust cross-border payment solution, powered by reliable price data from Chainlink oracles. This choice illustrates a growing demand for high-precision services, utilized by decentralized finance protocols.

Thanks to the Chainlink standard, the RLUSD stablecoin will be able to benefit from secure pricing data in real-time. This alliance also aims to reassure users of both the XRP Ledger blockchain and Ethereum, the two networks on which RLUSD will be issued.

The hope? To see decentralized finance applications, such as lending and decentralized exchange, quickly adopt this stablecoin.

For Ripple, this offensive in the already crowded stablecoin market is strategic. Tether and other competitors indeed weigh heavily, but the promise of a “professionally rated asset, denominated in USD” could appeal to institutional investors, who are particularly fond of a regulatory-compliant environment.

XRP and LINK struggling in the crypto market

But despite this agreement, XRP and LINK experienced violent market shocks. The two tokens did not escape the general correction that hit the market. Thus, XRP dropped by about 6%, falling to $2.28, while LINK plunged by over 11%, settling around $20.5.

In the long term, however, the outlook for XRP is far from negative. The cross-border token has surged over 300% in recent months, benefiting from a renewed interest in international payment solutions. Even though it still lags behind its 2018 records, Ripple's token maintains a strong momentum.

Chainlink, for its part, is fighting to regain the trust of a volatile market. After briefly flirting with $30, its price has now been cut in half, reminding us that volatility remains the eternal companion of cryptocurrencies. Nevertheless, the long-term prospects for LINK remain encouraging, thanks to its essential role in the DeFi ecosystem.

Bitcoin, meanwhile, attracts the attention of the Czech National Bank.

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