RLUSD Stablecoin (RLUSD) Is Significantly Increasing Its Trading Activity

Ripple stablecoin (RLUSD) is significantly increasing its trading activity amid the broader crypto market volatility. Market dynamics have sparked interest

Amid the broader cryptocurrency market volatility, Ripple stablecoin (RLUSD) is significantly increasing its trading activity.

As market dynamics drive users to seek new avenues of accessibility, they are turning to stablecoins, like RLUSD, which is gaining attention for its rapid rise in liquidity on Aave.

This development comes after the world’s most extensive liquidity protocol announced that it would be adding support for the stablecoin on its platform.

According to recent data, Aave users can now access RLUSD on V3 Ethereum Core market.

This partnership will allow users to easily supply and borrow RLUSD on Aave, with a $50 million cap on the lending pool and a $5 million borrowing limit.

Following this collaboration, RLUSD has seen an unprecedented surge in liquidity. Within just days of the partnership announcement, the stablecoin reached a new all-time high (ATH), as noted by blockchain analytics firm IntoTheBlock.

As of April 25, the BLock Coverage Flow Indicator shows that 77,350,849.54 RLUSD was supplied on Aave.

This signals a massive uptick in volume over the past four days, showcasing the potential of the lending pool.

It is likely that a large portion of the 77 million RLUSD supply could be accessed by potential borrowers on Aave.

This massive increase in volume and liquidity could be a sign of growing adoption and trust in RLUSD, especially considering it’s still a new entrant in the competitive stablecoin market.

It also showcases the willingness of users to utilize RLUSD alongside well-known and heavily used stablecoins like USDT and USDC.

This development could be a bullish sign for the RLUSD ecosystem, signaling its integration into the broader decentralized finance (DeFi) world.

It is no secret that stablecoin usage is surging. In 2024 alone, the number of holders rose by 15%. As the market recovers from the bear market, crypto traders are becoming more interested in alternative coins.

This broader adoption is also impacting Ripple (XRP) stablecoin, which has been operational for less than five months and has already seen a significant shift in volume.

The circulating supply of Ripple stablecoin is currently 294,042,711.84 RLUSD.

As expected, the greatest increase was seen in the XRP/RLUSD trading pair. According to data from XPMarkets, more than 9,500 transactions were registered in the last 24 hours. The ecosystem has 3 million XRP in liquidity at $2.2 per coin, which is valued at $6.8 million.

The other major RLUSD stablecoin pairs are SLT/RLUSD, which has liquidity of $53,500, XPM/RLUSD, which has liquidity of $10,900, and FUZZY/RLUSD, which has liquidity of $5,800.

Miles Behind USDT And USDC, Can RLUSD Challenge Their Dominance?

With RLUSD showing strong adoption in the stablecoin sector, some may wonder if it can compete with well-established leaders like Tether’s USDT and USDC.

These two are the dominant players in the market, with market capitalizations of $146.09 billion for USDT and $62.36 billion for USDC. In comparison, the Ripple USD token’s market cap is still under $300 million. After four months of operation, it stands at $294 million.

Launched in 2014, USDT has more than a 50% share of the market and ranks as the third-largest crypto asset in terms of market capitalization.

The asset boasts a significant first-mover advantage and unmatched liquidity compared to the Ripple token. This implies that for RLUSD to stand a chance, it will need massive adoption and years to play catch-up.

On the other hand, USDC appears to be a more direct competitor for RLUSD. Notably, Circle, the issuer of USDC, enjoys the backing of Coinbase and is witnessing increasing adoption within the U.S.

The stablecoin’s already established trust and superior liquidity in the market also grant it an edge over other players.

For RLUSD to stand a chance at competing with these giants, it must leverage Ripple’s vast experience in the payment industry and push for broader global utility. Additionally, they could capitalize on the token’s regulatory compliance to drive even more user adoption.

In the short-term perspective, the stablecoin can aim to be ranked among the top five most-used assets in the industry by the end of 2025.

This goal was set by Brad Garlinghouse, CEO of Ripple Labs, who is optimistic about RLUSD’s potential to achieve this milestone within the next 18 months.

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