- Ripple’s RLUSD stablecoin, a fiat-backed asset launched with NYDFS approval, has seen a remarkable 106% surge in trading volume, reaching $39 million in a day, driven largely by its activity on the XRP Ledger and Ethereum networks.
- This growth highlights RLUSD’s versatility, speed, and scalability, despite a recent decline in XRPL’s total value locked (TVL).
Ripple’s RLUSD stablecoin has taken the cryptocurrency market by storm, recording a staggering 106% increase in trading volume within a single day. This dramatic surge, which saw the volume soar to US$39 million, underscores the growing appeal of RLUSD as a key player in the stablecoin space.
What is RLUSD?
Launched with the approval of the New York Department of Financial Services (NYDFS), RLUSD is a fiat-backed stablecoin pegged 1:1 to the US dollar. Its reserves consist of cash deposits and liquid assets such as commercial paper. The stablecoin is readily accessible on multiple platforms, including Uphold, MoonPay, and Bitso, with more listings expected soon.
One of RLUSD’s standout features is its dual-network capability. It operates both on the XRP Ledger (XRPL) and Ethereum, offering users the best of both worlds. XRPL provides speed and scalability, processing transactions in just 3-5 seconds with an impressive capacity of 1,500 transactions per second. On the other hand, Ethereum’s extensive ecosystem of decentralized applications (dApps) adds further versatility to RLUSD.
Breaking Down the Trading Activity
According to CoinMarketCap, RLUSD’s remarkable trading volume is primarily driven by its activity on specific pairs and platforms. For example:
- The RLUSD/USDC trading pair accounted for 55.02% of the total volume, indicating strong demand for stablecoin-to-stablecoin transactions.
- The BTC/RLUSD pair contributed 23.15%, reflecting interest in using RLUSD for Bitcoin trades.
- The XRP/RLUSD pair followed with 12%, showcasing Ripple’s robust ecosystem connections.
This performance highlights RLUSD’s growing role as a medium for diverse trading strategies.
Network Dynamics and Market Trends
RLUSD’s launch coincides with heightened activity on the XRPL network. Analysts note a rise in XRPL’s transaction velocity, suggesting increased user engagement. This uptick aligns with Ripple’s broader momentum, exemplified by XRP’s remarkable price surge during November, when the token climbed by 430% in a month.
However, not all indicators point upward. The total value locked (TVL) on the XRPL network has declined by 20% since December 16, dropping from over US$70 million to US$58 million. This decline could signal shifts in liquidity allocation or broader market trends.
Conclusion
RLUSD’s explosive growth reflects its potential to revolutionize the stablecoin market. By leveraging the strengths of XRPL and Ethereum, Ripple has positioned RLUSD as a versatile, high-performance asset in the crypto landscape. As adoption continues and network dynamics evolve, RLUSD could become a cornerstone of digital finance, reshaping how stablecoins interact with broader markets.