Pundit Explains How RLUSD Could Skyrocket XRP to $5

Amid persistent questions about how RLUSD could impact XRP price, a community pundit has shared how the stablecoin’s adoption could benefit XRP.

The Ripple stablecoin RLUSD has gained massive momentum since launching last December. Today, RLUSD ranks as the eighth-largest stablecoin, with a market cap of about $839 million. However, despite its success, some XRP proponents still question how RLUSD’s growth could benefit XRP.

How RLUSD Adoption Could Benefit XRP Price

To address these questions, XRP community figure Queen presented a theory that builds on the Shane Ellis concept. For the uninitiated, this concept suggests that institutional demand for XRP could cause a sudden price spike as liquidity dries up across exchanges, leading to a supply shock.

Shane Ellis Theory + RLUSD + G7 RLCurrencies = XRP Supply Shock. 👇 https://t.co/KIjEk6vViV

— Digital Perspectives (@DigPerspectives) October 12, 2025

The chatbot presented an instance where if a bank deposited $1 billion in RLUSD and used it to buy XRP, the order would clear cheaper sell levels, say at $0.50 and $1.00, before reaching higher ranges near $5. Once those lower prices disappear, the market could naturally reset at higher levels.

According to the AI, this process could create a cycle where RLUSD would make transactions faster and more efficient, institutions would find XRP’s speed and low cost appealing, and rising demand could push prices higher.

To the chatbot, RLUSD could become the bridge that allows institutions to execute massive XRP transactions without the usual friction of fiat conversions, potentially driving the type of market surge that the Shane Ellis Theory describes, and leading to an XRP price of $5.

However, it is important to note that this remains a hypothetical assessment and may not materialize as expected.

RLUSD Seeing Impressive Growth

Notably, the assessment comes as RLUSD sees impressive growth less than a year after launch. For one, the stablecoin became available for trading on Zero Hash and Revolut in February, giving more users access to it.

Then, in April, Ripple integrated RLUSD into Ripple Payments to support cross-border treasury operations with selected clients. Two months later, the Dubai Financial Services Authority officially recognized RLUSD as a compliant crypto token, allowing Ripple to expand more confidently into the UAE.

Interestingly, by July 9, Ripple chose BNY to serve as the main custodian of RLUSD reserves. This move strengthened investor confidence by involving one of the world’s largest financial institutions.

In August, Ripple signed a memorandum of understanding with Japan’s SBI Holdings to begin distributing RLUSD through SBI VC Trade starting in early 2026, targeting faster adoption across Asia. The following month, Ripple brought RLUSD into Africa through partnerships with Chipper Cash, VALR, and Yellow Card.

Ripple carried its momentum into October by partnering with Bahrain Fintech Bay to promote the adoption of RLUSD across the Middle East and North Africa. The partnership includes pilot programs, accelerator initiatives, and educational efforts for bolstering local adoption.

Source