RLUSD, the dollar-pegged Ripple stablecoin has hit a “huge milestone.”
This is according to a recent report from leading crypto analytics platform CryptoQuant. The report by leading analyst J.A. Maartunn highlights that RLUSD has hit a total supply of $120 million within its first two months of launch amid growing adoption. Specifically, the total stablecoin supply now sits around $120.8 million.
As the analyst highlighted, the bulk of the supply, about $83.3 million RLUSD, sits on Ethereum, while only about $37.4 million RLUSD is on the XRP Ledger.
Still, he noted that the XRPL has dominated supply growth in recent weeks. On the other hand, the stablecoin’s supply on Ethereum has largely remained stable after initially accelerating in the first few weeks, highlighting a shift in demand dynamics.
Maartunn attributed the demand shift to the lower fees on the XRPL compared to Ethereum. Another likely contributing factor is the rapid integration of the asset in the XRPL’s DeFi ecosystem. At the time of writing, xpmarket data shows 80 liquidity pools denominated in the stablecoin.
The recent supply feat comes on the heels of the stablecoin reaching a milestone of 100,000 transactions earlier in the month. In line with the growing demand on the XRPL, 95% of RLUSD transactions at the time were recorded on the network.
Despite these feats, RLUSD is still miles away from offering any real competition to established players like Tether and Circle, whose flagship products, USDT and USDC, boast market capitalizations of $142 billion and $56 billion, respectively.
However, many anticipate that this status quo may change with greater support for RLUSD from leading exchanges like Binance and Coinbase. At the same time, Ripple has yet to integrate the asset into its leading payments business.
RLUSD has been tipped to bolster XRP liquidity and DeFi activity by serving as an easy on-ramp for market participants and a stable unit of value for offerings like loans.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
