Ripple RLUSD Launch Delayed; XRP Ledger Fees Slashed Amid Market Volatility

The cryptocurrency community had been speculating about an upcoming launch of RLUSD stable coin on December 4.

The ripple stated that the launch of RLUSD has been delayed because the firm is working closely with the New York Department of Financial Services (NYDFS) to obtain final permission before launching.

We are working closely with the NYDFS on final approval and will offer updates as soon as feasible. We are totally committed to launching under the oversight of the NYDFS and adhering to the highest regulatory standards, Ripple said.

RLUSD Stablecoin: Beta Testing and Future Expansion

Ripple stablecoin is under beta testing. RLUSD, a 1:1 US dollar-backed stablecoin, will be fully supported by US dollar deposits, short-term US government Treasury securities, and cash equivalents.

Since early August, the RLUSD stablecoin has being beta tested on the XRP Ledger (XRPL) and the Ethereum mainnet. Ripple plans to gradually expand RLUSD to support new blockchains and DeFi technologies.

XRP Price Plummets Following RLUSD Delay Announcement

The news of the postponement led XRP’s price to tumble sharply. According to CoinMarketCap, the token has declined from $2.59 to $2.28 in 24 hours. This dip brought XRP’s market capitalization to $129.90 billion, trailing Tether’s (USDT) $136.75 billion.
XRP is currently the fourth-largest cryptocurrency. Increased selling pressure contributed to this price reduction. Glassnode data reveals panic selling following the announcement.
XRP under increased selling pressure.

XRP remains ahead of Solana (SOL) and Binance Coin (BNB). However, its 24-hour trading volume plummeted by 49.2%. This indicates a decrease in market interest. Moreover, investors appear unsure about XRP’s short-term prospects. The market is currently in a waiting period, and XRP faces problems in recovering.

XRP Ledger Drastically Reduces Account Fees by 90% Following Governance Vote

According to CoinDesk, a recent governance vote has dramatically cut the minimum costs required to register an account on the XRP Ledger (XRPL), the network that uses XRP, by 90%. This choice is made amid major price increases for the major cryptocurrency token.

In a social media post, network validator @‌aesthetes_art confirmed the adjustment, saying, “We’ve voted to reduce the #XRPL Reserves, along with other UNL Validators.” As a result, it is now ten times cheaper to start activities on the XRPL. The account reserve requirement has been reduced from 10 to 1 XRP, and the fees for generating trust lines or objects have been reduced from 2 to 0.2 XRP.

Investors Express Uncertainty Amid XRP Selling Pressure

Account activation on the XRP Ledger required making an account active on the network. A reserve is the minimum amount required in any XRP address to permit fund transactions. Every XRP address is initially deactivated, which means it cannot send or receive funds until it is activated.

Furthermore, the base reserve requirement refers to the fee associated with having an asset on the ledger. An object is any data element recorded by the ledger, such as payment channels, escrows, offers, or transactional data.

The fee drop correlates with an increase in account creation activity on the XRPL in recent days. According to network data, almost 30,000 accounts were created earlier this week, a huge rise from previous weeks’ averages of less than 2,000.

XRP Rallies 400% Over 30 Days Despite Minor Recent Decline

Several fundamental and regulatory issues have contributed to an XRP price surge of more than 400% in the last 30 days. This increase has driven XRP to become the third-largest coin by market value, with prices not seen since early 2018. However, the prices are 0.59% decreased in past 5 days.