Highlights
- RLUSD’s trading volume surged by 95%, with over 100,000 transactions in two months.
- Earlier, Ripple partnered with Chainlink to enhance RLUSD’s utility and adoption.
- RLUSD’s 24-hour trading volume reached $120.57 Million, indicating strong interest.
The growing adoption of the Ripple USD stablecoin (RLUSD) could bode well for XRP, but some community members are stressing that RLUSD might outshine XRP as a payment asset.
Recently, RLUSD experienced a remarkable surge in trading volume, increasing by up to 95%. This spike shows strong engagement from investors and traders, with the stablecoin amassing over 100,000 transactions in just two months.
RLUSD is gaining traction across the industry, as evidenced by the rising number of exchanges supporting the stablecoin. Last month, it partnered with Chainlink (LINK) to integrate RLUSD pricing data on-chain.
Currently, RLUSD is available on several platforms, including Uphold, Bitso, and CoinMENA, as well as trading on Zero Hash and Revolut.
As the stablecoin continues to gain recognition, its impact on the broader market remains to be seen. Keep reading to know more.
Trading Volume of Ripple USD (RLUSD) Recorded Significant Increase
Amid the ongoing fluctuations in the crypto market, RLUSD is making waves with a 24-hour trading volume of $120.57 Million, according to CoinMarketCap data.
This impressive figure highlights the growing interest and adoption of RLUSD within the crypto sector.
In January, the New York Department of Financial Services (NYDFS)-regulated stablecoin experienced significant capital inflows from whales.
Also, data from the Ethereum network indicates a shift in transaction patterns, with smaller transactions becoming less common while transfers exceeding $100,000 are on the rise. This trend signals increasing whale activity and confidence in Ripple USD.
The growing use of RLUSD across various financial activities showcases its importance in over-the-counter (OTC) trading, liquidity enhancement, and payment processing.
XRP Received a Spike in its Liquidity
Moreover, the growing adoption of Ripple USD could have positive implications for XRP, but some community members are highlighting that the Ripple stablecoin might outpace XRP as a payment asset.
By utilizing the XRP Ledger, RLUSD offers holders reduced volatility, a common issue when dealing with digital assets.
This stability may encourage users, particularly institutional investors, to conduct a larger portion of their transactions using RLUSD.
While this trend could lead to XRP being sidelined, the adoption of RLUSD might also enable more investors to engage in XRP-based DeFi transactions. This could provide a boost for XRP in the long run.
Despite the surge in RLUSD trading volume, the XRP price has not seen a corresponding increase.
As of this writing, XRP is priced at $2.56, reflecting a 0.42% decline over the past 24 hours. Analysts are optimistic about a potential price boost for XRP, but first, it must overcome key resistance levels.
On Monday, crypto analyst Dom pointed out that XRP price is facing strong resistance in the $3.15 to $3.50 range, which could hinder its ability to break out in the near future.
As XRP Ledger Adoption Grows RLUSD Hits $120M Supply
According to CryptoQuant analyst Maartunn, the growth of RLUSD on the XRP Ledger has outpaced that on Ethereum, where adoption has recently slowed.
This happened largely due to the lower transaction fees on the XRP Ledger, making it a more appealing choice for stablecoin transactions.
Initially, RLUSD experienced rapid growth on Ethereum, but interest has now shifted toward the XRP Ledger.
Maartunn anticipates further adoption, especially in Europe, where the recently-introduced MiCA regulations have led to the delisting of USDT.
Recent data indicates a significant increase in RLUSD transaction volume, with over 160,000 cumulative transactions and daily counts exceeding 600 in February. Since its launch in December, Ripple’s ongoing token minting suggests a continued growth in supply.
However, RLUSD still trails behind major stablecoins like USDC and USDT, which continue to dominate the market.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
