- Ripple’s RLUSD stablecoin outperformed competitors like PayPal’s PYUSD and Circle’s EURC in 24-hour trading volume.
- Ripple strategically manages RLUSD supply to maintain stability and prevent significant price drops.
The digital coin RLUSD issued by Ripple’s [XRP] stablecoin is swiftly becoming popular, surpassing well-known competitors such as PayPal’s PYUSD and Circle’s EURC tokens in daily trading volume within a 24-hour period.
Although RLUSD is still comparatively new, it has shown remarkable expansion, indicating a substantial impact within the market.
This feat is all the more impressive considering that Ripple Labs operates within a relatively smaller market cap compared to its rival companies, underscoring the burgeoning trust in their groundbreaking work on stablecoins.
Key areas in which Ripple stablecoin succeeded
As an analyst, I’ve observed that, according to CoinMarketCap, the market capitalization of Ripple’s stablecoin, RLUSD, was reportedly self-declared at approximately $53.1 million.
In a surprising surge, its 24-hour trading volume skyrocketed by 1,566% to $607.58 million.
The significant expansion we’re experiencing stands out starkly compared to peers such as PayPal’s PYUSD and Circle’s EURC. While the former has a market capitalization of approximately $491.72 million and a 24-hour trading volume of around $19.74 million, and the latter boasts a market cap of about $82.38 million with a daily trading volume of roughly $10.55 million.
Analyst Arthur observed that Ripple seems to be controlling the release of RLUSD intentionally to prevent a possible decrease in its worth.
Consequently, Ripple’s strategy is to regulate the flow of its tokens, thereby working towards price consistency and preventing sudden drops.
By taking a careful strategy now, RLUSD could set itself up for increased popularity and broader acceptance down the line, thereby securing its lasting success within the market.
Can RLUSD become the next big thing?
Despite the mysterious causes driving the fast expansion of RLUSD, it’s now on a path that makes it the third-most popular stablecoin in trading volume, following Tether (USDT) and Circle’s USDC.
In reality, Ripple’s Chief Technical Officer, David Schwartz, has pointed out that there’s been considerable demand for RLUSD tokens, with offers going up to $1,200 per token.
Nevertheless, although certain offers might be considered as speculative, Schwartz reassured the market that RLUSD tokens can be exchanged for $1 each. He added that any discrepancies in value would normalize as liquidity grows following the launch.
Impact on XRP’s price
Indeed, the swift expansion of Ripple’s RLUSD stablecoin can be clearly seen, as its market value ranks it among the top 13 most significant assets in the XRP Ledger.
Contrary to expectations, Ripple’s XRP saw a minor drop of about 4.19% over the last day, currently valued at $2.34 as reported by CoinMarketCap at the moment of reporting.
This shows that as RLUSD grows in popularity, the influence on XRP’s price is complex and intertwined with the larger market trends.
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2025-01-06 05:11