SMQKE Predicts the Dominance of XRP and RLUSD Following a Collapse of the 'Tether Bubble”

On-chain researcher SMQKE has issued a provocative prediction: the potential dominance of XRP and its associated stablecoin, RLUSD, following a collapse of what he terms the “Tether bubble.”

On-chain researcher SMQKE has proposed a bold theory: XRP and its stablecoin counterpart, RLUSD, might flourish in the aftermath of a "Tether bubble" collapse.

This claim is founded on worries concerning the stability of Bitcoin and Ethereum, both of which are said to be reliant on Tether's liquidity.

Recent statistics from Lookonchain appear to support SMQKE's concerns. Tether has been rapidly expanding its supply, recently minting 3 billion dollars in a matter of hours. This rapid creation has sparked speculation regarding the true backing of these new USDT coins.

SMQKE contends that Tether's activities may be artificially inflating the prices of Bitcoin and Ethereum, creating a speculative bubble. This claim is supported by studies from institutions like the Bank of France, which have found a strong correlation between Tether's liquidity and Bitcoin's price.

However, SMQKE believes this bubble is unsustainable and warns that a market correction could occur if investors discover potential flaws in Tether's backing. This correction could have severe consequences for Bitcoin and Ethereum, potentially shaking investor confidence in the broader cryptocurrency market.

In contrast to the perceived instability of Bitcoin and Ethereum, SMQKE presents XRP as a more stable alternative. XRP has shown resilience, especially in its use case for cross-border transactions and its commitment to regulatory compliance.

Moreover, Ripple's upcoming stablecoin, RLUSD, is set to provide a more regulated and transparent alternative to Tether. Unlike Tether, which has faced criticism for its lack of transparency and regulatory challenges, RLUSD is expected to comply with stringent regulations, ensuring it is fully backed and transparent.

SMQKE suggests that the introduction of RLUSD, coupled with Tether's regulatory uncertainties, could lead to a significant shift in market dynamics.

Investors may prefer the stability and security offered by a regulated stablecoin, potentially reducing Tether's market dominance. This could benefit XRP, as it is not as heavily intertwined with Tether's potential vulnerabilities.

While the future of the cryptocurrency market remains uncertain, SMQKE's analysis suggests that XRP and RLUSD could be well-positioned to benefit from a potential collapse of the Tether bubble.

The stability, regulatory compliance, and innovative use cases of these assets could make them attractive alternatives to Bitcoin and Ethereum, particularly in a market characterized by uncertainty and risk.

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