The sixth-largest cryptocurrency, XRP, is gaining momentum following Ripple's announcement of launching its own stablecoin pegged 1:1 to the USD on the XRP Ledger. This stablecoin will also be deployed on the Ethereum blockchain, resulting in a nearly 5% jump in XRP price since the news was released.

Amidst regulatory challenges from the US Securities and Exchange Commission (SEC), XRP price has seen a decline of 4% year-to-date (YTD) and over 10% in the last 30 days, indicating significant selling pressure on the cryptocurrency.

Currently, XRP is trading at an average price of $0.59 with a 24-hour trading volume of $2.15 billion, representing a 32% increase. Despite the ongoing SEC lawsuit, XRP maintains a market cap of $32.6 billion.

Ripple predicts a significant growth in the stablecoin market, estimating it to reach over $2.8 trillion by 2028, driven by the increasing demand for trust, stability, and utility.

Ripple's CEO, Brad Garlinghouse, described the stablecoin launch as a natural progression for the company to bridge the gap between traditional finance and cryptocurrency. He emphasized Ripple's extensive regulatory experience and robust financial position globally.

David Schwartz, Ripple's Chief Technology Officer, expressed his excitement for the stablecoin launch, highlighting the innovative features of the XRP Ledger, including issued currencies, auto-bridging, and decentralized exchange capabilities, which he believes will benefit users and developers.

Ripple's stablecoin will face tough competition from established players like Tether and Circle, known for issuing some of the largest dollar-pegged stablecoins in the market. Tether's USDT holds a market cap of around $106 billion, while Circle's USDC boasts a market cap of $32.9 billion. Another significant stablecoin to consider is DAI, with a market cap exceeding $5.3 billion.