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The world of crypto is evolving at a breakneck pace. Even the most promising collaborations do not always guarantee an immediate price increase. This is exactly what we observe with Ripple and Chainlink, whose partnership has not prevented their tokens, XRP and LINK, from suddenly declining.
A promising partnership around a new stablecoin
Ripple and Chainlink have recently joined forces to accelerate the adoption of a new stablecoin called Ripple USD (RLUSD). The stated goal? To deploy a robust cross-border payment solution, supported by reliable price data provided by Chainlink oracles. This choice illustrates a growing enthusiasm for high-precision services on which decentralized finance protocols rely.
Thanks to the Chainlink standard, the RLUSD stablecoin can benefit in real-time from secure pricing data. This alliance aims to reassure both XRP Ledger blockchain users and those on Ethereum, the two networks on which RLUSD is issued.
The hope? To see DeFi applications, such as lending and decentralized exchange, quickly adopt this stablecoin.
For Ripple, this offensive in the already crowded stablecoin market is strategic.
Tether and other competitors weigh heavily. However, the promise of a “professionally rated asset, denominated in USD” could appeal to institutional investors, who are keen on a regulatory-compliant environment.
XRP and LINK struggling in the crypto market
Despite this agreement, XRP and LINK have experienced violent market shocks. The two tokens have not escaped the general correction that hit the market. XRP dropped by about 6%, falling to $2.28, while LINK plummeted by over 11%, settling around $20.5.
In the long term, however, the outlook for XRP remains far from negative. The cross-border token has surged over 300% in recent months, benefiting from a resurgence of interest in international payment solutions. Even though it still lags behind its 2018 records, Ripple’s token maintains a strong momentum.
Chainlink, for its part, is fighting to regain the trust of a volatile market. After briefly flirting with $30, its price has now been cut, reminding us that volatility remains the eternal companion of cryptocurrencies. Nevertheless, the long-term prospects for LINK remain encouraging, thanks to its essential role in the DeFi ecosystem. Meanwhile, Bitcoin attracts the Czech National Bank.
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Fasciné par le bitcoin depuis 2017, Evariste n’a cessé de se documenter sur le sujet. Si son premier intérêt s’est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l’état du secteur dans son ensemble.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
