Ripple is making headlines with its stablecoin, RLUSD. Recently, RLUSD’s trading volume surged by 2,000% to over $611 million and now ranks fourth in the market for most-traded stablecoin. This has drawn attention to Ripple as it continues to soar in the world of crypto space.
Recently, Ripple minted 1.79 million RLUSD tokens on Ethereum. In just 24 hours, about 6.7 million RLUSD were sent to move around various platforms.
Big exchanges like Bitstamp transferred millions of RLUSD, and Ripple itself moved some tokens as well with the majority of the transfers coming from large investors “whales” according to CoinMarketcap.
Ripple is also focused on making sure people trust RLUSD. Ripple has issued almost $80 million worth of RLUSD, backed by approximately $83 million in reserves. To prove that everything is in order, Ripple plans to publish an attestation report later this month. This report will be checked by independent auditors and will show the world that RLUSD is properly backed, and secure for users.
Moreover, Ripple’s strong financial position gives it an edge. The company holds over $100 billion worth of XRP. Although there have been rumours about Ripple launching an IPO, CEO Brad Garlinghouse clarified that they are currently focused on growth and new ideas for now.
Also, Ripple is still in a legal battle with the SEC so important moves into stablecoins like RLUSD might be a smart way to secure its future.
But, with all this growth, there are still some concerns. Most of RLUSD’s trading volume (around 96%) is happening on the Bullish platform, which has led to questions about liquidity and possible market manipulation.
Some validators on the XRP Ledger believe that most of the trading volume is being caused by Ripple’s products and not regular traders. However, Ripple is going to explain things better with its upcoming report, which will help build more trust in RLUSD.
If RLUSD keeps growing, it could open new chances in the crypto market, but investors should be careful and watch out for possible risks.
Also Read: Ripple Teams Up with Chainlink to Boost RLUSD in DeFi
