Ripple‘s stablecoin, RLUSD, which is tethered to the US dollar, has seen an impressive surge in trading volume, increasing by 106% within the past 24 hours. According to reports from CoinMarketCap, the trading volume has skyrocketed to $39 million, reflecting a notable uptick in market interest around RLUSD.
What Drives RLUSD’s Trading Volume?
A significant portion of RLUSD’s trading activity originates from the RLUSD/USDC pair on the Bullish exchange, which accounts for 55.02% of the total volume. Additionally, the BTC/RLUSD and XRP/RLUSD pairs contribute 23.15% and 12% of the volume, respectively. Launched with the approval of the New York Department of Financial Services, RLUSD is pegged to the US dollar at a 1:1 ratio.
How is RLUSD Structured?
RLUSD’s backing consists of cash deposits and commercial papers, ensuring its stability. The stablecoin is actively traded across various platforms, including Uphold and Bitso, and aims to maintain transparency and reliability to attract users in the cryptocurrency sector.
Recent advancements on the XRPL network, where RLUSD was launched, provide significant benefits, such as the ability to process 1,500 transactions per second with minimal latency. However, despite this surge in transactions, the total value locked (TVL) on XRPL has seen a decrease of 20% since December, now standing at $58 million, indicating some challenges ahead.
RLUSD’s growth is poised to bolster Ripple’s influence in the cryptocurrency arena. Expectations are high for its upcoming listings on more exchanges, which could considerably shift market dynamics.
