RLUSD: Ripple[XRP] Mints Another 1 Million Tokens as Trading Volume Surges to $402M

On the 3rd of February, Ripple[XRP] minted another one million RLUSD tokens, suggesting increased traction and adoption of the new stablecoin.

Cryptocurrency XRP minted another one million RLUSD stablecoin tokens on 3 February.

The latest minting coincides with a surge in trading volumes, which reached $402 million.

According to data from Coingecko, the stablecoin’s market cap increased to $108 million.

The recent minting of RLUSD stablecoin tokens follows a debut batch of 500,000 minted in January.

The stablecoin, pegged to the US dollar, is designed to facilitate faster and cheaper transactions on the XRP Ledger (XRPL).

Its launch comes amid growing demand for stablecoins, which offer price stability compared to volatile cryptocurrencies.

As a decentralised stablecoin, RLUSD is fully backed by XRP and aims to provide a transparent and auditable option for traders and institutions.

The stablecoin is available for trading on exchanges such as Bitrue, Gate.io and MEXC.

While RLUSD has seen strong initial traction for a stablecoin launched less than a month ago, it still lags behind established USD stablecoins in terms of market share.

According to data from CoinGecko, Tether’s USDT, the largest stablecoin, has a market cap of $140 billion, while Circle’s USDC, the second-largest, has a market cap of $54 billion.

Other stablecoins, such as Usual USD (USDO) and Ethena’s USDE, also have over $1 billion in market size.

Despite the competition, Ripple executives are optimistic about RLUSD’s potential to gain market share, particularly in regulated markets.

In a December interview, Ripple president Monica Long highlighted the stablecoin market’s expected growth to $3 trillion by 2028.

She expressed confidence that regulated and diversified stablecoins, such as RLUSD, will play a significant role in this expansion.

With Tether’s USDT facing regulatory challenges in Europe following the implementation of strict MiCA guidelines last year, USDC has gained a comparative advantage in the EU market.

However, it remains to be seen whether RLUSD will directly compete with USDC in regulated markets.

The stablecoin’s performance is unlikely to be directly linked to XRP’s price movements.

Although both XRP and RLUSD experienced a surge in activity on 3 February, the broader market, including XRP, also saw a V-shape recovery following the deleveraging event.

Increased demand for RLUSD would be a positive indicator for the XRPL ecosystem and its native token, XRP.