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Ripple mints 1M RLUSD tokens, market cap surges to $108M – Details
February 5, 2025 | Benjamin Njiri
In a recent development, Ripple has minted an additional 1 million RLUSD tokens. This surge in token supply has resulted in a significant increase in the stablecoin’s market capitalization, which now stands at a staggering $108 million.
It is essential to note that this latest move by Ripple is not without significance, as it suggests increased traction and adoption of the RLUSD token. The fact that the minting coincided with a massive surge in trading volumes, which topped $402 million, further underscores the growth and potential of this stablecoin.
One question that arises from this development is whether RLUSD can increase its market share. On paper, it seems challenging for the new kid on the block to compete with established giants such as Tether’s USDT and Circle’s USDC, which have massive market caps of $140 billion and $54 billion respectively. However, Ripple’s leadership remains confident that regulated and diversified stablecoins like RLUSD will play a significant role in the future.
In a recent interview, Ripple’s president reiterated her company’s stance on the stablecoin market growing to $3 trillion by 2028. This is a bold prediction considering the existing giants’ strong foothold. The regulatory environment could be an important factor in determining whether RLUSD can indeed compete with its more established counterparts. For instance, Tether has faced regulatory challenges in Europe after strict MiCA guidelines went live last year. However, whether RLUSD will be able to outdo USDC in regulated markets remains uncertain.
Interestingly, the recent surge in RLUSD’s market capitalization cannot be directly attributed to XRP’s price action. Following a deleveraging event on February 3rd, the broader cryptocurrency market, including that of XRP, experienced a V-shape recovery. Any stronger demand for RLUSD will positively impact the XRPL ecosystem and its native token, XRP.
This development has significant implications for investors in the Ripple (XRP) ecosystem. As Ripple continues to grow and expand its RLUSD stablecoin offerings, it is essential that we closely monitor its market capitalization and trading volumes.
Source: eng.ambcrypto.com
