Regulated stablecoins have seen a surge in popularity over the last year, with Ripple’s RLUSD emerging as a significant player in the market.
Since its launch, RLUSD has shown consistent growth and has gained momentum in recent months.
RLUSD Supply Reaches $120 Million Milestone
Recent data from CryptoQuant indicates that RLUSD has witnessed remarkable growth, now boasting a total supply of $120 million.
At the time of reporting, XRPL held approximately 37.4 million RLUSD tokens, surpassing Ethereum [ETH] and maintaining a total supply below $83.3 million.
Following its inception, the stablecoin saw a sharp rise in usage on Ethereum before transitioning to XRPL due to lower transaction costs on the XRP Ledger.
This increase in RLUSD supply marks a significant milestone for regulated stablecoins, underscoring the sustained interest within the crypto community and the expanding use of Ripple’s XRP.
Implications for XRPL Network
The continued growth is particularly noteworthy for Ripple’s native token, XRP.
As the RLUSD holdings on XRPL continue to expand, it demonstrates the interdependency between the two assets, where growth in RLUSD usage sets the stage for enhanced performance and development of XRP.
This rising adoption of XRP is further evidenced by the mounting number of total addresses, which have increased by 300k over the past month, surging from 6.3 million to 6.6 million.
This escalating adoption is crucial for driving the price growth of XRP.
Moreover, XRPL’s decentralized exchange (DEX) liquidity has recorded a notable increase, reaching a monthly peak of 24.2 billion tokens. This uptick in liquidity showcases heightened engagement, with more users contributing to the liquidity pool, reflecting a growing interest in the XRP Ledger.
With the growing adoption, XRPL’s network is evidently garnering favorable market sentiment, paving the way for the progression of XRP and RLUSD.
In essence, XRPL is currently enjoying a favorable market environment, as illustrated by the continuous expansion of RLUSD. This expansion has positively impacted XRP, leading to increased adoption and market involvement.
Under favorable market conditions, XRP is well-positioned to break past the $3.0 resistance level. Moreover, a surge in demand for XRP will fuel the further growth of RLUSD and vice versa.