Ripple [XRP]’s Stablecoin RLUSD Is Rapidly Gaining Traction, Outperforming Established Rivals

Despite its relatively young age, RLUSD has demonstrated impressive growth, signaling a strong market presence. This achievement is even more remarkable

Ripple [XRP]’s stablecoin RLUSD is rapidly gaining steam, outperforming established rivals like PayPal’s PYUSD and Circle’s EURC tokens in 24-hour trading volume.

Despite being the youngest among them, RLUSD has shown 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.

Highlighting the key areas where 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.

Commenting 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?

While 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

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.