XRP Decouples from the Market as Santiment Attributes Its 52% Rally to the Launch of the RLUSD Stablecoin

Ripple's President, Monica Long, anticipates that the demand for the RLUSD stablecoin will increase significantly this year.

Cryptocurrency XRP, native to Ripple, has outperformed most top cryptocurrencies this month with a 52% rally. Several factors have contributed to this rally, including shifting regulatory landscapes in the US and increasing institutional adoption.

In its latest report, crypto analytics firm Santiment highlighted the role of the RLUSD stablecoin in XRP’s gains. This stablecoin, having received approval from US regulators, is expected to bolster Ripple’s presence in the digital payments space, driving gains for XRP.

As reported by ZyCrypto, Ripple’s President, Monica Long, anticipates a significant increase in demand for the RLUSD stablecoin this year. This stablecoin’s performance in gaining market share could bode well for XRP’s price.

In addition to RLUSD, financial institutions’ increasing adoption and strategic partnerships could contribute to XRP’s gains. One such partnership is with Ondo Finance to tokenize US Treasury securities on XRP Ledger.

According to Santiment, financial analyst Louis Navellier expects major financial institutions to continue integrating Ripple within their systems, which will boost investor confidence.

“As more banks and payment networks explore using XRP for cross-border transactions, its demand and credibility in the market continue to rise,” noted Santiment in its report.

However, the report also highlighted that despite the recent performance, some traders remain skeptical about XRP’s ability to extend gains further, especially after the rally showed signs of stalling and the euphoria accompanying previous gains subsided.

Moreover, while the new Trump administration could present a shift in crypto regulations, the recent appeal by the US Securities and Exchange Commission (SEC) in the case dealt a blow to Ripple and halted the token’s rally.

XRP’s open interest declines sharply

Data from the derivatives market suggests waning conviction among traders in XRP. This follows a notable decline in open interest, indicating that derivative traders are closing their positions on XRP.

According to Coinglass data, XRP’s open interest has dropped to $6.12 billion, a significant decline from the all-time high of $7.62 billion recorded barely two weeks ago. Nevertheless, this OI remains elevated, and any further increase is expected to support a price rebound.