Throughout the previous year, compliant stablecoins have witnessed a surge in popularity. The most recent addition to this category is RLUSD by Ripple, which has quickly gained significant traction in the market.
Since its introduction, RLUSD has been on a steady growth trajectory, maintaining strong momentum over the past several months.
RLUSD Reaches $120 Million Supply Milestone
As per data from CryptoQuant, RLUSD has been experiencing rapid expansion, resulting in a total supply milestone of $120 million.
Currently, the XRPL platform holds approximately 37.4 million RLUSD, surpassing Ethereum [ETH], and effectively keeping the total supply below 83.3 million USD.
Initially witnessing a sharp growth trend on Ethereum post-launch, RLUSD has now garnered more attention on XRPL due to its lower transaction fees compared to Ethereum.
This surge in RLUSD supply marks a significant achievement for compliant stablecoins, underscoring the increasing demand within the crypto community and the expanding adoption of Ripple’s XRP.
Implications for XRPL
The sustained growth is particularly noteworthy for Ripple’s native asset XRP.
With continuous expansion in XRPL’s RLUSD holdings, the intertwined nature of the two becomes more apparent, as growth in RLUSD sets the stage for improved performance and expansion of XRP.
This uptrend in XRP adoption is further evidenced by the uptick in total addresses, which rose by 300k over the past month, climbing from 6.3 million to 6.6 million.
Hence, the increasing adoption of XRP plays a pivotal role in driving its price appreciation.
In addition, XRPL’s decentralized exchange (DEX) liquidity has surged, hitting a monthly peak of 24.2 billion. This robust surge in liquidity points to heightened engagement, with more users contributing to liquidity pools, reflecting a growing interest in the XRP Ledger.
With the growing adoption, XRPL’s network has been receiving positive market sentiment, paving the way for potential growth for both XRP and RLUSD.
In essence, XRPL is enjoying favorable market conditions, evident through the continuous expansion of RLUSD. This growth has positively impacted XRP, leading to increased adoption and market participation.
Given the conducive market environment, XRP is well positioned to challenge the $3.0 resistance level once again. Furthermore, a surge in XRP demand will propel the growth of RLUSD and vice versa.