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Ripple CTO David Schwartz Warns Against RLUSD FOMO Amid Launch Speculation

The stablecoin market has experienced remarkable growth in 2024, driven by rising cryptocurrency adoption and a surge in institutional participation. All eyes are now on Ripple’s newly approved stablecoin, Ripple USD, a.k.a. RLUSD. But Ripple’s Chief Technology Officer, David Schwartz, addressed concerns over potential price anomalies for the asset as it prepares to launch. Speculative Hype Around RLUSD Unnecessary In a detailed statement on X, Schwartz explained that while Ripple USD (RLUSD) is designed to maintain a stable $1 peg, there could be temporary price fluctuations due to supply shortages during the initial launch phase. His comments were prompted by reports of RLUSD displaying an exorbitant price of $1,200 per unit on the Xaman trading platform, which stirred concerns within the crypto community. Schwartz clarified that such inflated prices likely stem from speculative behavior or individuals seeking the “honor” of acquiring the first fraction of RLUSD on decentralized exchanges. However, he stated that these aberrations are unsustainable and will likely be corrected quickly by arbitrage activities, restoring the stablecoin to its intended $1 value. The exec urged potential buyers to avoid succumbing to FOMO’s warning that RLUSD is not a speculative opportunity but a tool for stability in cross-border payments. He stressed that the essence of a stablecoin is price stability, and any deviations from the peg, especially at launch, should not be misinterpreted as lasting trends. “Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.” Last week, Ripple CEO Brad Garlinghouse announced that RLUSD received final approval from the New York Department of Financial Services (NYDFS) and would soon debut, primarily targeting institutional players. RLUSD will play a crucial role in Ripple’s cross-border payment solutions, working alongside XRP to enhance liquidity and efficiency for global transactions. New Players in Stablecoin Space With a total market value of $211 billion, the stablecoin market is rapidly expanding as adoption grows. The San Francisco-based company is entering a space dominated by Tether’s USDT and Circle’s USDC, which have market caps exceeding $140 billion and $42 billion, respectively, according to CoinGecko. Ripple, however, sees an opportunity in the competition as it looks to position itself as a credible player capable of carving out market share. Schwartz, for one, had earlier predicted the stablecoin sector could exceed $2 trillion in value by 2028. The market’s potential has also attracted major fintech players like PayPal and Robinhood . The post Ripple CTO David Schwartz Warns Against RLUSD FOMO Amid Launch Speculation appeared first on CryptoPotato .

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Ethereum May Retest $3,700 Before a Major Rally, Analyst Predicts

Ethereum relatively sluggish price performance compared to Bitcoin’s continuous rise appears to have captured the attention of crypto analysts. While Bitcoin has created a new peak above $106,000 earlier today, Ethereum’s price still sits below $4,000 with a current trading price of $3,943, marking a modest 1.4% increase over the past 24 hours. However, despite this slow pace, some analysts see signs of strength and potential growth for Ethereum in the near term. Related Reading: Ethereum Battles Bearish Retail Sentiment Amid Surging ETF Demand Retest Before The Major Rally One notable analyst, CryptoBullet, shared his insights on X, drawing comparisons between the current market environment and Ethereum’s January 2021 rally. “Second consecutive weekly candle closed above the resistance,” the analyst observed. “The shape of the candle and overall environment reminds me of January 2021. We might wick to $3,700 this week, but it will be bought back up quickly. Don’t ignore this ETH strength.” CryptoBulllet further emphasized that Ethereum’s ability to hold its position above key resistance levels is a strong indicator of bullish momentum, suggesting that a significant price movement could be on the horizon. $ETH 1W update Second consecutive weekly candle closed above the Resistance ???????? The shape of the candle and overall environment reminds me of January 2021 We might wick to $3700 this week but it will be bought back up quickly ???? Don’t ignore this #ETH strength! https://t.co/rIamWMSAb6 pic.twitter.com/29bs5aTUd3 — CryptoBullet (@CryptoBullet1) December 16, 2024 Titan of Crypto, another renowned analyst in the community echoed this optimism, noting Ethereum’s highest weekly candle close since 2021 as a major milestone. “Ethereum New ATH Incoming. ETH just achieved its highest weekly candle close since 2021, a major milestone,” he wrote. “A successful retest could propel it to its previous ATH and beyond.” These observations indicate growing confidence among market participants that Ethereum could soon reclaim its all-time high of $4,878, last achieved in November 2021. Ethereum Traders Faces Liquidation Despite these bullish projections, Ethereum’s recent price action has not been favorable for all market participants. According to data from Coinglass, 123,021 traders were liquidated over the past 24 hours, resulting in a total of $396.41 million in liquidations across the crypto market. Ethereum accounted for approximately $53.12 million of these liquidations, with long positions taking the larger hit at $28.4 million, while short positions saw liquidations worth $24.69 million. Notably, liquidation occurs when a trader’s position is forcibly closed by an exchange due to insufficient funds to cover losses. In the case of Ethereum, the higher volume of liquidations, particularly among long positions, reflects a level of over-leverage among traders betting on the asset’s upward momentum. Featured image created with DALL-E, Chart from TrangView Crypto Potato

Binance-Listed Altcoin Launches Major New Product

Ethena, one of the fastest-growing decentralized finance (DeFi) platforms of 2024, today announced the launch of its new stablecoin, USDtb. According to the developers, this stablecoin is designed to complement the protocol’s platform’s native stablecoin, the USDe token, and balance its performance in bearish crypto market conditions. USDtb is pegged to the US dollar and holds 90% of its reserves in BUIDL, a tokenized money market fund issued by asset management giant BlackRock in partnership with Securitize. Ethena founder Guy Young highlighted the innovation behind USDtb, saying: “Given the rapidly growing demand for different stablecoin options, we saw a clear opportunity to offer users a new product that offered a completely different risk profile to USDe without them having to leave our trusted ecosystem.” Related News: BREAKING: Coinbase Announces New Altcoin Listing During Massive Bull Rally Ethena has attracted nearly $6 billion in user funding since going public earlier this year. The company’s native token, USDe, maintains its $1 price by implementing what it describes as a unique investment strategy: shorting perpetual swaps on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) while increasing funding rates. This approach has yielded impressive returns during bull markets (currently 27% annually), but has struggled in bearish conditions due to persistently negative funding rates. To address these risks, USDtb will serve as a balancing mechanism. During periods when funding rates are negative, Ethena will close underlying derivative positions in USDe and redirect assets to USDtb to mitigate losses. The team also plans to position USDtb as collateral for margin trading on centralized exchanges in the future. *This is not investment advice. Continue Reading: Binance-Listed Altcoin Launches Major New Product Crypto Potato