Ripple's RLUSD Explodes: Can It Overtake USDT & USDC in the $150B Stablecoin Race?

Ripple, a major player in the blockchain space, has launched its own dollar-pegged stablecoin, RLUSD. Recent data indicates a remarkable surge in its supply, leading many to question if this newcomer can challenge the dominance of established giants like USDT and USDC. 

This article will provide an in-depth RLUSD stablecoin analysis, examining its recent growth, potential use cases, and how it stacks up against its competitors in the stablecoin market.

Read Also: XRP to USD: Convert Ripple to US Dollar

Stablecoin Market Grows Exponentially

The stablecoin market has grown into a multi-billion dollar sector, with its total market capitalization now exceeding $150 billion. Stablecoins are digital assets designed to maintain a stable value, usually by being pegged to a traditional fiat currency like the US dollar. 

This stability makes them essential for cryptocurrency trading, decentralized finance (DeFi), and cross-border payments, providing a hedge against the volatility of other digital assets.

The RLUSD Growth Story: Minting and Adoption

Recent data on RLUSD minting paints a clear picture of rapid expansion. In July alone, the supply of the Ripple stablecoin has grown by 122.5 million tokens. 

The last week of July was particularly active, with 45 million RLUSD being minted. The Ripple Stablecoin Tracker reported two specific minting events: 25 million RLUSD on July 23 and another 20 million on July 25.

This increasing supply is a direct reflection of growing demand for RLUSD on various exchanges and DeFi protocols. As a fully backed, 1:1 stablecoin, RLUSD is collateralized by cash and cash equivalents, which provides a high degree of trust and stability. 

The token is specifically designed to be used for DeFi applications and payments, leveraging Ripple's extensive network and expertise.

Read also : How to Buy Ripple USD (RLUSD) on Bitrue Exchange

Is RLUSD Had Explosive Growth?

The growing RLUSD adoption is further evidenced by its recent listing on PDAX, a major cryptocurrency exchange in the Philippines licensed by the central bank.

Additionally, an A rating from Bluechip, a digital asset rating platform, recognized RLUSD as a highly trusted stablecoin, which could boost its credibility among institutional and retail investors.

The market capitalization of the RLUSD stablecoin is rapidly approaching the $600 million mark, currently sitting at $577 million. 

This growth is accompanied by a significant increase in trading activity, with its 24-hour trading volume surging by 129% to $58.34 million.

Read also : Swiss Bank Launches Ripple RLUSD Custody & Trading, Enhancing Crypto Banking Solutions!

RLUSD vs USDC and USDT: A Battle for Market Share

The stablecoin market is currently dominated by two giants: Tether (USDT) and Circle (USDC). Together, they command the vast majority of the market share. 

For RLUSD to compete, it must differentiate itself and capture a significant portion of the market. The success of RLUSD vs USDC and USDT will depend on several factors, including regulatory compliance, liquidity, and integration with existing financial systems.

A key use case for stablecoins, which RLUSD is well-positioned to capitalize on, is cross-border payments. The total amount of stablecoin transfers reached $27.6 trillion in 2024, a figure that surpassed the combined transaction volumes of Visa and Mastercard. 

This immense volume highlights the growing need for efficient and low-cost payment solutions, a niche where Ripple's network has a strong track record.

Read also : The Benefits If RLUSD Integrates with Cardano’s DeFi Ecosystem

Ripple Efforts to Drive RLUSD Growth

Ripple is also actively working to drive RLUSD growth and adoption through innovative initiatives. In a philanthropic effort, Ripple has committed $25 million in RLUSD to fund leading education nonprofits, showcasing a practical, real-world application of the stablecoin and promoting its use beyond just trading.

The overall stablecoin market continues to grow at a rapid pace. The average supply of stablecoins in circulation has increased by approximately 28% year-on-year, demonstrating a strong appetite for these stable digital assets. This expanding market provides fertile ground for a new player like RLUSD to carve out a significant niche.

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Conclusion: Can RLUSD Overtake the Leaders?

The launch and initial performance of the Ripple stablecoin, RLUSD, have been explosive. The rapid RLUSD minting and growing market capitalization demonstrate strong early momentum and demand. 

While a Ripple USDT USDC dominance shift is not imminent, the early signs of RLUSD growth indicate that a new and formidable player has officially entered the stablecoin race.

FAQ

What is RLUSD?

RLUSD is the new US dollar-pegged stablecoin launched by Ripple, designed for use in DeFi, payments, and other applications.

How much has the RLUSD supply grown recently?

The RLUSD stablecoin's supply expanded by 122.5 million tokens in July, with a significant portion minted in the last week of the month.

How is RLUSD backed?

RLUSD is a fully backed stablecoin, collateralized 1:1 by US dollars and cash equivalents to maintain its stable value.

What is the current market capitalization of RLUSD?

The market capitalization of the RLUSD stablecoin is rapidly approaching $600 million, currently sitting at around $577 million.

What are the main uses for RLUSD?

RLUSD is built for DeFi, payments, and various applications, with cross-border payments being a key potential use case for its adoption.