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Over the past four days, Ripple USD (RLUSD) has not been minted at the stablecoin treasury. Ripple Stablecoin Tracker data shows the payment platform last minted 2,500,000 RLUSD on Feb. 28 at its treasury. This implies that there has been no additional minting in the past 96 hours.
Is Ripple making pauses to compete with rivals?
Although Ripple has not provided direct communication for this pause, it is not the first time minting has been halted. Notably, in February, Ripple did not mint any new RLUSD for over 10 days, a move analysts considered strategic.
It is unclear if this 96-hour pause will drag on longer than the previous 10-day break. However, industry experts argue that it is a deliberate move to balance demand and supply. Ripple may have halted minting to prevent flooding the market and affecting the token’s stability.
Yuri MolchanThey opine that the frequent pauses are beginning to form a pattern and might continue with the payment platform.
Some analysts believe halting minting could positively impact XRP in the short term by stabilizing prices. Notably, Ripple intends for RLUSD to stabilize XRP’s price by pairing with it in liquidity pools. Hence, a pause in minting could upset this effect.
Market watchers believe Ripple is doing this to stay competitive with leaders in the stablecoin space. USDT and USDC have continued to dominate the sector despite Ripple's efforts to gain a sizable slice.
XRP price fluctuates amid RLUSD minting pause
Interestingly, the last time Ripple minted RLUSD, the XRP price was trading at $2.14 on the cryptocurrency market. XRP experienced some price fluctuations after that, rising to a high of $2.937 following its inclusion in the list of U.S. Strategic Crypto Reserve.
Gamza KhanzadaevAs of this writing, XRP price was changing hands at $2.40, a 9.33% decline from its previous level. If a similar trend plays out, the minting, despite the dried up liquidity, may not drag down the coin’s growth.
Dan Burgin
Vladislav Sopov