Ripple Coin, also known as XRP, is a cryptocurrency alternative to Bitcoin that was created in 2012 and has recently surged in popularity with increasing buyer confidence since the 2024 Presidential election. 

And now there is a new reason for optimism. 

A new iteration of it (Ripple USD or RLUSD) is now being connected to the Federal Reserve’s “FedNow” payment system in the form of a “stablecoin,” that is, a form of digital currency that is matched in value to the U.S. dollar through the backing of direct dollar deposits, bonds and other cash equivalents. 

The current price for one Ripple Coin is $2.41 and fluctuating, but analysts expect a trickle-down effect may occur with the admission of the new stablecoin version, causing the price of XRP to rise and reap net gains for investors. 

So if you’re looking for a cheap crypto-coin to invest in that has potential to become big in the future and bring you great profits, XRP is currently an attractive choice. 

It’s price in November 2024 was around 50 cents, and it has increased in value by over 333% in just three months, with analysts looking for continued and drastic long-term increases. 

The Trickle-Down Effect 

So just how might the integration of Ripple USD with the Federal Reserve payment system trickle down to affect the price of XRP? 

First, this may increase the demand for XRP. Ripple USD could boost on-chain liquidity, and thereby increase usage of XRP. And since Ripple USD will be issued on the XRP Ledger (XRPL) and Ethereum, increased transaction volume and usage could naturally drive up demand for XRP, potentially leading to price increases. 

Second, the introduction of the Ripple USD stablecoin might stabilize transactions on XRPL by offering a dollar-pegged asset for trading and settlements. This could make XRP more attractive for institutional investors who prefer stability and indirectly support XRP’s price by fostering a more robust ecosystem. 

There’s also speculation around Ripple using its XRP holdings in escrow to back Ripple USD. If Ripple indeed uses XRP from its escrow to mint RLUSD, this could effectively reduce the circulating supply of XRP, potentially leading to price appreciation due to supply/demand dynamics. 

Furthermore, the integration of Ripple USD into regulated systems like FedNow could also enhance XRP’s adoption in other regulated markets, potentially boosting its price by legitimizing its use in financial transactions. 

All great signs for the budding crypto-currency. 

And so far, the launch of Ripple USD has already been followed by bullish market reactions, with XRP seeing significant price increases around the time of its approval and launch. 

While the exact extent of this effect will unfold over time, Ripple USD is anticipated to have a positive impact on XRP’s price through increased demand, usage and liquidity, and possibly even supply reduction. In the world of markets there are, of course, no guarantees — but there is cause for hope.