HomeNewsRLUSD Supply Surges: How It Could Influence XRP’s Market Performance

RLUSD Supply Surges: How It Could Influence XRP’s Market Performance

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  • Ripple USD (RLUSD) has reached a significant milestone with a total supply of 120 million.
  • The increasing traction of RLUSD on XRPL, coupled with its integration into major financial platforms, could boost XRP’s liquidity and potentially drive a long-term price rally.

Exactly two months after its official launch, the Ripple USD (RLUSD) stablecoin has hit a significant milestone, reaching a total supply of 120 million. Launched on both the Ethereum blockchain and the XRP Ledger (XRPL), RLUSD has seen rapid adoption, demonstrating its growing utility in various sectors of the financial ecosystem.

Blockchain analytics platform CryptoQuant highlighted this achievement in a recent post, citing insights from researcher JA Maartunn. Initially, RLUSD saw stronger traction on Ethereum; however, recent data indicates a notable shift towards the XRPL. The increasing adoption of RLUSD on XRPL can be attributed to lower transaction fees and strategic integrations.

One of the significant recent developments includes RLUSD’s listing on Margex, a high-leverage trading platform, further increasing its accessibility to traders. Additionally, the stablecoin secured a listing with Zero Hash earlier this year and became available for trading on Revolut, a prominent financial platform. These integrations have played a crucial role in driving the supply and adoption of RLUSD.

RLUSD Outlook on XRP Ledger and Ethereum

Ripple initially began test minting RLUSD on both Ethereum and XRPL in August 2023, months before its official launch. As of now, RLUSD’s adoption has accelerated on the XRPL, primarily due to its lower transaction costs compared to Ethereum.

Data reveals that approximately 37.4 million RLUSD tokens are currently circulating on the XRPL, while Ethereum still holds a larger share at around 83.3 million RLUSD. However, the growth rate on XRPL is outpacing Ethereum, signaling a potential shift in dominance over time.

This increasing preference for XRPL is tied to Ripple’s broader agenda of advancing Real-World Asset (RWA) tokenization. The company has been actively forming partnerships to drive this initiative, positioning RLUSD as a key player in blockchain-based financial services.

XRP Price and Whale Accumulation

The expanding utility of RLUSD within the XRPL ecosystem has had a direct impact on XRP’s liquidity and market dynamics. Greater adoption of the stablecoin supports the underlying network, creating positive market sentiment for XRP.

At the time of writing, XRP is trading at $2.64, reflecting a 3% decline over the past 24 hours. However, market analysts remain optimistic about the long-term trajectory of XRP. Prominent analyst XRP Captain has previously projected an ambitious price rally, suggesting that XRP could reach $250 by 2026, driven by continued whale accumulation and institutional adoption.

As RLUSD continues to gain traction, it could serve as a crucial catalyst for XRP’s price growth. The increasing circulation and integration of the stablecoin reinforce Ripple’s ecosystem, potentially setting the stage for a major market breakout in the coming years.

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Dennis Grace
Dennis Grace
Peter Macharia is a crypto enthusiast and seasoned writer who specializes in blockchain technology, digital assets, and decentralized finance. He has a talent for simplifying complex concepts and turning them into engaging informative content. With a deep understanding of the industry, Peter delivers clear and precise analysis that resonates with both beginners and experienced crypto enthusiasts.
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