- Ripple has paused the minting of its stablecoin, RLUSD, for four days, continuing a pattern of strategic supply control that may help stabilize XRP prices.
- While some analysts see this as a competitive move against USDT and USDC, others worry that prolonged inactivity could impact Ripple’s liquidity and market position.
Ripple’s stablecoin, Ripple USD (RLUSD), has not seen any new minting activity in March, sparking discussions among market analysts and crypto enthusiasts. This pause, now stretching over four days, raises questions about its impact on XRP and the broader stablecoin market.
Strategic Move or Market Concern?
According to data from the Ripple Stablecoin Tracker, the last RLUSD minting event occurred on February 28, when 2,500,000 RLUSD were issued. Since then, Ripple has not added any new supply, continuing a pattern of intermittent pauses in minting.
While Ripple has not provided an official reason for this halt, some industry experts suggest it is a calculated move to balance supply and demand. By controlling the issuance of RLUSD, Ripple may be aiming to prevent excessive market saturation, which could destabilize the token’s value. Similar pauses have occurred before, with a notable 10-day gap in minting last month.
XRP’s Price Reaction
Market analysts are divided on the impact of this pause on XRP. Historically, XRP’s price has experienced fluctuations in response to RLUSD minting activities. For instance, when Ripple last minted RLUSD, XRP was trading at $2.14. Following its inclusion in the U.S. Strategic Crypto Reserve, XRP surged to $2.937 before retracting to its current level of $2.40, marking a 9.33% decline.
If this pattern holds, XRP’s price could continue fluctuating as investors assess the implications of the stablecoin pause. Some experts argue that halting RLUSD minting temporarily stabilizes XRP prices, while others worry that extended inactivity could disrupt liquidity and affect the long-term adoption of Ripple’s ecosystem.
Competing in the Stablecoin Arena
Ripple’s approach to RLUSD minting may also be part of its broader strategy to compete with dominant stablecoins like USDT and USDC. These established players have maintained strong market positions, and Ripple appears to be carefully managing its supply to avoid destabilization while strengthening its position in the stablecoin space.
What’s Next for Ripple and XRP?
The coming days will be crucial in determining whether this pause is just another short-term strategy or a sign of deeper liquidity concerns. If Ripple resumes minting soon, XRP may experience renewed momentum. On the other hand, a prolonged pause could raise concerns about Ripple’s ability to sustain its stablecoin project against fierce competition.
For now, XRP investors and market watchers will be keeping a close eye on Ripple’s next move, as any change in RLUSD supply could have significant implications for the crypto landscape.
