RLUSD, Ripple Labs’ stablecoin, was launched a month ago but has not yet managed to stand out in this niche of the digital currency market.
Although there was great expectation in the community for XRP, the cryptocurrency issued by Ripple, its market capitalization remains low, which shows that It still has a long way to go to compete with giants like USDT (Tether) and USDC (Circle).
Precisely, Kaiko Research highlights in its latest report that USDT increased its market dominance during the last month of 2024. In this regard, the analysts detailed that “since the elections in the United States, Tether’s USDT experienced strong net buying, with its dominance among stablecoins, which increased from 72% in November to 84% in December.”
In that sense, the report explains that the bullish cycle that began with Donald Trump’s victory in the United States presidential election “driven an increase in both off-chain and on-chain demand for liquidity in stablecoins.”
The stablecoin market reaches a capitalization of 212.5 billion dollars, of which 137 billion correspond to USDT and 46.27 billion dollars to USDC, according to data from CoinGecko.
RLUSD, for its part, It barely has a market capitalization that exceeds $71 million.
Currently, it is the fourth most traded stablecoin during the last 24 hours of 164 million dollars, above DAI, PayPal USD or Ethena USDe (USDe). However, it is far from USDT which prevails in this metric with 101 billion dollars.
In this context, it is clear that Ripple will have to create incentives for the market to use its stablecoin.
As CriptoNoticias already reported, Jack McDonald, senior vice president of stablecoins at Ripple, revealed that They are discussing with other exchanges the possibility of incorporating RLUSD. One of them could be Coinbase, the largest cryptocurrency exchange platform in the United States.
Another issue that could encourage its use is that RLUSD works to enter the European market. Although it does not yet have the approval required by the European Union’s Cryptoasset Market Regulation (MiCA), Ripple officials stated that they are in the “application process to obtain the corresponding licenses.”
This scenario is framed in a European market that, after Tether’s decision not to comply with the new regulations, is dominated by USDC, which opens an opportunity for new competitors such as RLUSD.
Although it is true that no major changes are expected, because The European stablecoin market is small compared to the United States and AsiaRLUSD has a window to begin to have more adoption and visibility among large financial institutions.
Another aspect that could tip the balance in favor of RLUSD is its approval by the New York Department of Financial Services (NYDFS). This support is key for banks that They look for solutions to the problems that the traditional financial system has, such as delays in transactions and high commission costs.
Thus, RLUSD is positioned as an attractive alternative for institutions interested in adopting cryptocurrency network technology, without compromising regulatory compliance.
