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Ripple USD stablecoin (RLUSD) is on the verge of breaking into the top 50 cryptocurrency asset club as its market capitalization is on a steady climb. Given its growth trajectory, RLUSD might leap ahead and displace KuCoin Token (KCS).
RLUSD minting and market implications
CoinMarketCap data shows that Ripple USD stablecoin currently has a total market capitalization of $1,335,804,735. This leaves it $72.62 million behind KuCoin Token, which is facing market volatility due to broader crypto market fluctuations.
With RLUSD gaining traction on the stablecoin market and among users in the sector, the asset could bridge the gap.
If Ripple decides to mint new RLUSD, it is likely to close up the gap. However, it is not possible to predetermine the rate at which it might enter the top 50 assets.
Notably, Ripple cannot just mint new coins, as it must balance the supply on the market to avoid losing value amid low demand. So far, Ripple has delicately managed it, minting in a sector dominated by giants like Tether (USDT) and Circle (USDC).
Despite its dominance, the Ripple USD stablecoin has managed to gain a sizable slice of the market and witnessed increased growth within one year of its launch.
Falling RLUSD volume and market recovery pose risk
While Ripple USD stablecoin looks ahead to when it will make its entry into the top 50 assets, its volume is currently down by 36.92% at $38.63 million. The decline could be due to less real-time demand, as market fluctuations continue to impact demand for the stablecoin generally.
It is worth mentioning that if the market witnesses a recovery, KuCoin token, as well as other altcoins, might soar in value and push RLUSD further down the list.
Nonetheless, Ripple executive Reece Merrick says RLUSD is moving beyond being a "Ripple-only" asset. He says the asset needs to exist wherever there is a demand, and this could support its upward trajectory.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team