The conversation around XRP’s long-term valuation is often dominated by speculation, emotion, and unrealistic price targets. Yet, beneath the noise, structural shifts are quietly forming that could materially alter how demand for XRP enters the market.
One of the most consequential developments is Ripple’s U.S. dollar–pegged stablecoin, RLUSD, which is increasingly being discussed not as a competitor to XRP, but as a catalyst for its repricing within institutional markets.
This perspective has been clearly articulated by Xaif in a recent X post, where he outlines how RLUSD could fundamentally change the mechanics of large-scale XRP accumulation. Rather than focusing on hype-driven narratives, the argument centers on market structure, liquidity dynamics, and how institutions actually execute sizable trades in real-world conditions.
THIS IS HOW $RLUSD WILL DRAMATICALLY INCREASE THE PRICE OF $XRP.#XRPHolders #XRPArmy #XRPL https://t.co/OU0t10eCzJ pic.twitter.com/1MLGQRxu4a
— Xaif Crypto🇮🇳|🇺🇸 (@Xaif_Crypto) December 14, 2025
RLUSD as a Structural Upgrade to XRP Market Access
RLUSD, launched by Ripple in December 2024, is designed as a fully collateralized, U.S. dollar–backed stablecoin aimed at institutional-grade settlement and liquidity operations. Its role is not to replace XRP’s utility, but to remove friction at the point where capital enters the XRP market.
Traditionally, large buyers must move fiat through banking rails, manage settlement delays, and absorb volatility before even acquiring XRP. RLUSD compresses that entire process into a stable, on-ledger asset that can be deployed instantly.
This matters because institutions do not think in terms of retail-style market entries. They think in size, speed, and certainty. By holding RLUSD, banks and financial institutions can time their XRP purchases precisely, without exposure to interim currency swings or settlement risk.
Order Book Dynamics and Price Escalation
One of the most critical elements of Xaif’s analysis lies in how large RLUSD-funded buy orders interact with XRP’s exchange order books. XRP liquidity, like all markets, is layered. Lower-priced sell orders are finite. When a sufficiently large buyer enters using a stable, liquid asset like RLUSD, those lower tiers are rapidly consumed.
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As sell-side liquidity thins, the market is forced to reprice upward to find new sellers. This is not theoretical. It is how price discovery works in every exchange-driven market. The difference RLUSD introduces is efficiency. Faster settlement allows sustained buying pressure without the pauses and fragmentation that typically slow institutional accumulation.
The Institutional Feedback Loop
Once XRP reprices higher, the system does not reset. Institutions using XRP for cross-border payments are primarily motivated by speed, capital efficiency, and cost savings, not short-term price sensitivity.
If XRP continues to outperform legacy rails even at higher valuations, demand does not disappear. Instead, RLUSD enables repeated cycles of XRP acquisition and usage, reinforcing a feedback loop where liquidity access and utility coexist.
Why This Matters for XRP’s Long-Term Valuation
RLUSD does not magically force XRP higher. What it does is remove structural barriers that previously capped how quickly and efficiently large capital pools could enter the market. Over time, this shifts XRP from being primarily retail-driven to increasingly institutionally influenced. In markets, that transition is often where durable repricing begins.
In that context, RLUSD should be viewed less as a headline product and more as infrastructure. And as history repeatedly shows, when infrastructure changes, markets follow.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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