The world of crypto is evolving at breakneck speed. Even the most promising collaborations don't always guarantee an immediate price increase. This is exactly what we are seeing with Ripple and Chainlink, whose partnership did not prevent their tokens, XRP and LINK, from suddenly declining.
A promising partnership around a new stablecoin
Ripple and Chainlink recently joined forces to accelerate the adoption of a new stablecoin called Ripple USD (RLUSD). The announced objective? Deploy a robust cross-border payment solution, supported by reliable price data provided by Chainlink oracles. This choice illustrates a growing enthusiasm for the high-precision services on which decentralized finance protocols are based.
Thanks to the Chainlink standardthe RLUSD stablecoin can benefit from secure real-time pricing data. This alliance aims to reassure both users of the XRP Ledger blockchain and those of Ethereum, two networks on which RLUSD is issued.
Hope? See DeFi applications, such as lending and decentralized exchange, rapidly adopt this stablecoin.
For Ripple, this offensive on the already crowded stablecoin market is intended to be strategic.
Tether and other competitors loom large. However, the promise of a “professional quality, USD-denominated” asset could appeal to institutional investors who are keen on an environment that respects regulations.
XRP and LINK struggling in the crypto market
Despite this agreement, XRP and LINK suffered violent stock market shocks. Both tokens did not escape the general correction that hit the market. XRP fell around 6%, dropping back to $2.28, while LINK tumbled over 11%, settling around $20.5.
In the long term, however, the balance sheet of XRP remains far from negative. The cross-border token has soared more than 300% in recent months, benefiting from renewed interest in international payment solutions. Even if it is still stagnating below its 2018 records, Ripple's token maintains solid momentum.
Chainlink, for its part, is fighting to regain the trust of a volatile market. After flirting with $30 recently, its price has now been reduced, reminding us that volatility remains the eternal companion of cryptocurrencies. Even so, the long-term outlook for LINK remains encouraging, thanks to its essential role in the DeFi ecosystem. Meanwhile, Bitcoin attracts the Czech National Bank.
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