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Cryptocurrency News Articles
Ripple Gears for RLUSD Launch as Stablecoin Market Liquidity Hits Record Highs
Oct 10, 2024 at 11:15 pm
As Ripple prepares to make an impact on the stablecoin market with its upcoming Ripple USD (RLUSD) stablecoin, market liquidity has reached record levels.
Ripple is gearing up for the launch of its highly anticipated stablecoin, Ripple USD (RLUSD), and the market is abuzz with record levels of liquidity in the lead-up to the launch.
Despite still being in its beta testing phase, Ripple's stablecoin has taken center stage as the company aims to bolster its presence in the stablecoin market, having previously penetrated the custody scene with the acquisition of Metaco.
A recent report by CryptoQuant suggests that Ripple could be targeting remittances and money transfers with RLUSD, noting that the project will likely capitalize on the established infrastructure of the XRP Ledger (XRPL) and the Ethereum network.
Back in April, Ripple announced its plans to enter the stablecoin market, highlighting that the market, which was valued at $150 billion at the time, is expected to surge to over $2.8 trillion within the next four years.
Four months after unveiling the product, Ripple began beta testing on the Ethereum network and the XRPL in August, with the testing phase involving minting and burning millions of the token so far.
Last month, Ripple's CEO confirmed that the project is set to launch within a matter of weeks.
Meanwhile, as Ripple prepares for the full-scale launch of RLUSD, the broader stablecoin market is seeing record growth, according to the CryptoQuant report.
As of late September 2024, stablecoin liquidity reached record highs, with the total market capitalization of major stablecoins hitting $169 billion. This marks a $40 billion, or 31%, increase year-to-date (YTD), indicating a growing demand for stablecoins.
Stablecoins, like RLUSD, have become essential for liquidity, providing traders with a secure way to hold and move funds between volatile digital assets and fiat currencies.
Moreover, stablecoin balances on centralized exchanges also surged to record levels, with USDT leading the way. USDT balances on the Ethereum network (ERC20) reached $22.7 billion in October, reflecting a 54% increase, or $8 billion, since the beginning of the year.
On the TRON network, USDT balances grew to $8.5 billion, with all of it being held on centralized exchanges. This increase in liquidity could positively impact crypto prices as larger stablecoin reserves provide traders with more capital to execute trades efficiently.
USDT continues to dominate the stablecoin market, currently accounting for 71% of the market, with a total market cap of nearly $120 billion, indicating a 30% YTD growth.
Among the top two stablecoins, USDC from Circle follows with a 21% market share, reaching a $36 billion market capitalization—a 44% YTD growth. The combined market cap growth of these two stablecoins has been instrumental in driving up liquidity across the crypto ecosystem.
CryptoQuant pointed out that an increase in the stablecoin market capitalization is often linked to rising Bitcoin and other crypto prices, highlighting the importance of stablecoins in the broader crypto market.
Once Ripple's RLUSD stablecoin exits beta, it could experience significant growth, especially given its unique dual network functionality on XRPL and Ethereum.
The report also highlights that the XRPL decentralized exchange (DEX) has already seen a high volume of fiat currency transactions, including USD and Chinese Yuan, along with popular stablecoins like USDT and USDC.
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