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Ripple stablecoin (RLUSD) has seen a sharp drop in volume by over 57% as user demand has declined dramatically. CoinMarketCap data reveals that in the last 24 hours, trading volume has plummeted by a massive 60.14% to $44.63 million.
RLUSD demand dives amid halt in minting activity
The development has sparked debate on how much it could impact XRP, the ecosystem’s native token. Notably, the stablecoin's low demand suggests that users who once flocked to RLUSD as an alternative to Tether’s USDT and Circle’s USDC might be pulling back.
This could imply limited liquidity on the XRP Ledger (XRPL) based on decentralized exchanges and dApps. Low demand might have been responsible for Ripple's lack of stablecoin activity for the past three weeks.
According to a U.Today report, Ripple Labs, the blockchain payment giant, has not minted RLUSD for over 41 days. The recent drop in volume confirms the analysis that Ripple might have halted the process to maintain supply.
Despite being Ripple’s associated currency, XRP operates on its positive fundamentals and remains independent of RLUSD. Although it is used for cross-border payments, it will likely not suffer any huge impact from the slip in RLUSD volume.
XRP decouples despite RLUSD uncertainty
As of press time, the XRP price was changing hands at $2.18, representing a 0.28% decline in the last 24 hours. The asset is on a rebound journey and has climbed from $2.08 to its current level. Investors in the ecosystem support XRP’s journey as trading volume has surged by a remarkable 75.12% to $3.51 billion.
This indicates that although RLUSD has suffered volume collapse, XRP has decoupled from it and is flashing a bullish signal.
It is also likely that RLUSD’s current volume slip is temporary as the broader market signals a trend shift for the stablecoin. Ripple recently received regulatory approval in Dubai, a development that could support improved ecosystem performance in the coming days.
Vladislav Sopov
U.Today Editorial Team