The digital asset market was pleasantly surprised Ripple's announcement of its intention to enter the stablecoin market, and with that market expected to reach $3 trillion by 2028, XRP could become a major beneficiary.
Ripple has already confirmed that its stablecoin offering will debut in June. However, many investors expressed concerns about what this means for their XRP token. With the vitality of XRP in the Ripple Labs network, the emergence of a stablecoin could only be a benefit to the cryptocurrency.
Also read: Ripple analyst predicts XRP will hit $1 if this happens
Ripple Stablecoin can boost the growth of XRP
Stablecoins have undoubtedly become one of the most important sectors of the digital asset market. Backed by fiat currency and other assets, they are praised for their security. Moreover, the sector is poised to get a new entrant, issued by cross-border juggernaut Ripple.
This could benefit the company immensely as Ripple is about to enter a stablecoin market expected to reach $3 trillion by 2028, with the XRP token set to be majorly impacted. While some investors may be concerned about a stablecoin ushering in XRP, the opposite could be true.
Ripple has had a tough time over the past 24 hours. According to the report, the price has fallen by more than 2.8% CoinMarketCap. The asset then faced a correction that reversed the positive performance since early May.
Also read: Ripple (XRP) price forecast: mid-May 2024
With the SEC lawsuit underway, XRP has failed to gather any momentum. It has struggled to break free from the $0.50 level and is currently close to reaching that support again. However, Ripple could change that, and do so through its stablecoin.
Has wrinkle recently released a statement exploring the benefits of stablecoins. Within that, it shared its assessment of the $3 trillion sector. However, it coincides with a statement from Ripple CTO David Schwartz. Specifically, he discussed the huge necessity that XRP is to the overall Ripple vision.
If Ripple's stablecoin only increases the company's value and benefits the ecosystem, XRP would benefit the most. Its stated validity would drive the token's value to new heights. Moreover, its arrival could be the catalyst for its price regain. That's especially true now that the SEC lawsuit isn't reaching a conclusion anytime soon.