Analyst: Ripple’s RLUSD Stablecoin could enter the top 5 by 2025.

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  The attestation of RLUSD in February highlighted the stablecoin’s achievements.
  
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  Crypto experts have been impressed by RLUSD’s recent growth.
  
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  To become a stablecoin in the top 5, RLUSD must grow 13 times.
  

Ripple’s stablecoin RLUSD recently attracted attention after positive growth metrics were detailed in its monthly attestation report for February. The report revealed that RLUSD’s current market cap was approximately $170 million.

This figure reportedly exceeded internal projections made by the crypto custodian Standard Custody. Its CEO forecasted that RLUSD might become a top-5 stablecoin based on market cap by 2025. Analysts are now assessing the factors that could support this potential growth trajectory.

What Factors Support RLUSD’s Growth Trajectory?

Standard Custody’s CEO shared an analysis that could lead to RLUSD expanding. The stablecoin can now be found on more exchanges. LMAX Group is one example of a wider accessibility.

RelatedRLUSD Takes off on XRP Ledger As USDT Faces Europe Delisting

RLUSD is also useful in Decentralized Finance (DeFi), which uses liquidity pools. Non-Governmental Organizations like DIVA Donate, Mercy Corps Ventures, and Mercy Corps reportedly use stablecoins to streamline their charitable giving, demonstrating real-world acceptance.

How far must RLUSD climb to reach the top 5?

For RLUSD, to make it into the top 5 stablecoins by the end 2025, a significant climb is required. It would have to surpass the market cap of the current fifth-ranked, stablecoin FDUSD. According to CoinMarketCap, FDUSD had a market cap of around $2.59bn at the time this article was written.

RLUSD, meanwhile ranked 12th, with a market capitalization of around $194 million. This difference means that RLUSD will need to grow roughly 13 times over the next 9 months in order to surpass FDUSD (assuming FDUSD does not experience major growth). USDT, USDC DAI and USDe are the four dominant stablecoins.

Related: Federal Reserve Explores Ripple’s RLUSD stablecoin for FedNow Payment system

RLUSD is a stablecoin pegged to the US dollar, supported by both XRP Ledger blockchain and Ethereum blockchain. Ripple claims that it is fully backed up by reserves of cash or cash equivalents. Each RLUSD token can be redeemed 1:1 for US Dollars through approved channels. Its potential rise to the top tier is heavily dependent on continued adoption, expanding uses cases, and favorable markets conditions.

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