Ripple mints 1M RLUSD tokens, market cap surges to $108M – Details
- Ripple minted another 1 million RLUSD tokens on the 3rd of January.
- This indicated increased traction but was still relatively small compared to other USD stablecoins.
On the 3rd of February, Ripple[XRP] minted another one million RLUSD tokens, suggesting increased traction and adoption of the new stablecoin.
Interestingly, the recent minting also coincided with a whopping surge in trading volumes, which topped $402 million.
As a result, Coingecko data showed that the stablecoin’s market cap surged to $108M, just shy of $110M.
Will RLUSD increase market share?
RLUSD’s traction seems strong for a one-month-old stablecoin. However, it pales compared to established USD stablecoins. Tether’s USDT, the largest stablecoin by market share, has a $140B market cap.
Circle’s USDC, the second-largest, has a $54B market cap. Others like Usual USD (USDO) and Ethena’s USDE have over $1B in market size.
Ripple’s leadership is confident RLUSD could gain more market share, especially in regulated markets.
In a December interview, Ripple’s president, Monica Long, reiterated the stablecoin market will grow to $3 trillion by 2028. She believes regulated and diversified stablecoins like RLUSD will play a significant role.
Tether’s USDT has faced regulatory challenges in Europe after strict MiCA guidelines went live last year. This has given USDC a comparative moat in the EU market.
However, whether RLUSD will compete with USDC in regulated markets remains to be seen.
The recent traction in RLUSD can’t be directly attributed to XRP’s price action. After the deleveraging event on the 3rd of February, the broader market, including XRP, saw a V-shape recovery.
Any stronger demand for RLUSD will suggest a net positive for the XRPL ecosystem and its native token, XRP.