RLUSD is the fourth most traded stablecoin in the last 24 hours, surpassing PayPal USD.
The adoption of this asset can boost the price of XRP.
The trading volume of RLUSD, Ripple Labs’ stablecoin, exceeded $614 million in the last 24 hours, representing an increase in this indicator of more than 1,400%.
In this way, was positioned as the fourth most traded stablecoin during the last dayabove DAI, PayPal USD or Ethena USDe (USDe).
The performance that Ripple’s digital asset is having shows that begins to gain ground in a market dominated by giants like USDT and USDCthe stablecoins issued by the companies Tether and Circle, respectively.
As CriptoNoticias has reported, RLUSD is a stablecoin that maintains 1:1 parity with the dollar, which is backed by deposits in the North American currency, United States government bonds and cash equivalents, to ensure the stability and liquidity of the asset. In addition, it is worth noting that it operates on the Ethereum and XRP Ledger networks.
According to Etherscan explorer datathere are currently 57.6 million RLUSD issued on Ethereum and 1,672 transfers were recorded. Of that total number of units, 70.97% are under the control of the Ripple Deployer management.
These data reflect that the stablecoin is still in a stage of early acceptance and concentrated ownershipso these movements in trading volume may be indications of a company strategy to generate interest in the market.
Another issue to take into account is that in the coming days Ripple will announce the first certification report, which will show the breakdown of the assets that support your new financial product.
On the official Ripple site, it is highlighted that the total currency circulation is 77.2 million RLUSD and the reserve funds amount to 83.2 million dollars. That is, for every 1 RLUSD there is 1.07 dollars in reserve, which represents an overcollateralization of 7%.
The publication of this report will be key to demonstrating that the asset has sufficient coverage, a sign of stability and credibility for future investors.
So far, the performance that has been RLUSD was not reflected in the XRP priceRipple Labs’ cryptocurrency. The thing is, as mentioned above, most of the trades were recorded in Ethereum and not in the XRP Ledger.
At the time of publication of this note, the price of the fourth most valuable digital asset on the market is $2.36, which represents a drop of 3.8% in the last 24 hours.
Considering that RLUSD also operates on XRP Ledger, The performance of the stablecoin will have a direct impact on the price of XRP.
If RLUSD increases trading volume on the XRP Ledger, demand for that network’s native currency, XRP, for commission payments will increase. As a consequence, this will generate an upward momentum in the price of the cryptocurrency.
