Ripple USD ($RLUSD) has emerged among the most popular stablecoins in a relatively short period of time. Since its launch 106 days ago, the number of RLUSD in circulation has grown above 240 million following a surge in adoption.
According to CoinMarketCap data, the circulating supply of RLUSD was over 243 million tokens by the end of March. The issue of 50 million RLUSD supported this for a single day, accelerating its network’s growth. This record-breaking mint fuelled the record surge of the stablecoin’s circulation.
Ripple has also been strategic in its monetary policy, or rather, its decisions to issue more coins into the market by occasionally halting minting to balance the market. The growth of the RLUSD at an alarming rate makes it easy to note that it has taken its rightful place in the list of cryptocurrencies.
Ripple has been incorporating RLUSD into its client cross-border payment service to help drive demand. Companies such as BKK Forex in Russia and iSend are currently using the stablecoin for treasury management. Ripple plans to advance the promotion of RLUSD among its corporate clients. This increasing trend justifies the fact that stablecoin has a lot of advantages: speed, stability, and regulation compliance.
The stablecoin listing has expanded its presence in major exchanges such as Kraken, LMAX, and Bitstamp. These listings make RLUSD very liquid and easily accessible for both retail and institutional investors.
Market performance and price movement
Despite RLUSD’s success, its associated cryptocurrency, XRP, has experienced a recent dip in price. XRP was down 1.61% over the past 24 hours, trading at $2.11 as of press time. Over the past week, XRP’s price has dropped by 14%, placing it at a critical support level.
However, the company has been performing well, and its native token, XRP, has recently been struggling with declining prices. At the time of this writing, XRP registered a 0.59% rise over the past 24 hours, trading at $2.16. In the past week, XRP has declined by 9.90%, and it has reached a very crucial support level.
According to Jack McDonald, Ripple’s head of stablecoins, RLUSD’s success has surpassed Ripple’s initial projections, growing at a faster pace than expected. The stablecoin has reached a market capitalization of $244 million and a monthly transfer volume of $860 million.
McDonald noted, “We’re seeing the market cap continue to grow, outpacing our internal projections. In short order, RLUSD is being used for a number of use cases, including use as collateral in both crypto and tradfi trading markets.”
Regulatory Developments and Future Prospects
Ripple entered the stablecoin market in December 2024 after gaining approval from the New York Department of Financial Services. This clearance paved the way for the growth of RLUSD and established Ripple as a serious competitor in the emerging stablecoin market.
U.S. lawmakers are set to meet on April 2 to discuss a significant stablecoin bill. This legislation may help create legal clarity for stablecoins and strengthen the positions of RLUSD and Ripple in the market.
