- 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.
Ripple [XRP]’s stablecoin RLUSD is rapidly gaining traction, outperforming established rivals like PayPal’s PYUSD and Circle’s EURC tokens in 24-hour trading volume.
Despite its relatively young age, RLUSD has demonstrated impressive growth, signaling a strong market presence.
This achievement is even more remarkable given its smaller market capitalization compared to its competitors, highlighting the growing confidence in Ripple Labs’ stablecoin innovation.
Key areas in which Ripple stablecoin succeeded
According to CoinMarketCap, Ripple’s stablecoin RLUSD boasted a self-reported market cap of $53.1 million.
In a surprising surge, its 24-hour trading volume skyrocketed by 1,566% to $607.58 million.
This remarkable growth contrasts sharply with competitors like PayPal’s PYUSD, which has a market cap of $491.72 million and a 24-hour volume of $19.74 million, as well as Circle’s EURC with a market cap of $82.38 million and a volume of $10.55 million.
Remarking on the same, analyst Arthur suggested that Ripple is strategically managing the supply of RLUSD to avoid a potential decline in value.
Hence, by controlling the release of tokens, Ripple aims to maintain stability and prevent a rapid decrease in price.
This cautious approach may position RLUSD for greater demand and wider adoption in the future, ensuring its long-term success in the market.
Source: Arthur/X
Can RLUSD become the next big thing?
Although the reasons behind the rapid growth of RLUSD remain unclear, its current trajectory positions it as the third most traded stablecoin after Tether (USDT) and Circle’s USDC.
In fact, Ripple CTO David Schwartz recently highlighted that RLUSD has already garnered significant interest, with bids reaching as high as $1,200 per token.
However, while some of these bids may be speculative, Schwartz assured the market that RLUSD tokens are redeemable at a $1 peg, and any deviations will stabilize as liquidity improves post-launch.
Impact on XRP’s price
Still, the rapid growth of Ripple’s RLUSD stablecoin is evident, with its market capitalization placing it as the 13th largest asset on the XRP Ledger.
Despite this, Ripple’s XRP experienced a slight decline of 4.19% in the past 24 hours, trading at $2.34 at press time according to CoinMarketCap.
This demonstrates that while RLUSD continues to gain traction, its impact on XRP’s price remains nuanced within the broader market dynamics.
