Ripple’s regulated stablecoin, Ripple USD (RLUSD), has reached a significant milestone with its total supply hitting $120 million. This achievement marks a major step forward for the digital asset, particularly on the XRP Ledger (XRPL), where its growth has outpaced that on Ethereum.
Growth on XRP Ledger
The XRP Ledger currently holds around 37.4 million RLUSD, surpassing Ethereum, which has a supply below 83.3 million RLUSD. This shift can be attributed to much lower transaction fees on the XRP Ledger, making it a more appealing option for users. Initially, RLUSD experienced rapid growth on Ethereum shortly after its launch, but this expansion has since slowed, allowing XRPL to gain ground.
As transaction costs on the XRP Ledger remain competitive, the adoption of RLUSD is expected to accelerate. This trend is particularly notable as users seek cost-effective solutions for their transactions, contributing to the stablecoin’s rising popularity.
Regulatory Changes and Adoption
Anticipated regulatory changes in Europe are expected to further boost the adoption of RLUSD. With the implementation of MiCA regulations leading to the delisting of USDT in Europe, RLUSD is poised to gain traction among users looking for compliant alternatives. The stablecoin’s usage is increasing, supported by a significant rise in transaction activity.
Recent data indicates that the cumulative transaction count for RLUSD has surpassed 160,000, with daily transactions exceeding 600 on several occasions in February. This growing activity reflects a strong interest in RLUSD, bolstered by its regulated launch on December 17, following the necessary approvals.
Market Integration and Supply Expansion
RLUSD has been integrated into major trading platforms, including Bitstamp, Revolut, and Zero Hash, facilitating its adoption among users. Additionally, Ripple’s minting of over 1.05 million tokens on February 10 signifies ongoing supply expansion, enhancing the stablecoin’s market presence.
Despite its recent success, RLUSD still trails behind leading stablecoins in the market. Circle’s USDC has a market cap of approximately $56.5 billion, while Tether’s USDT remains the dominant player with a market cap of $142 billion. This competitive landscape highlights the challenges RLUSD faces as it seeks to establish itself among the top stablecoins.
XRP Price Movements
In parallel to the developments surrounding RLUSD, XRP has also been in the spotlight with its price movements. Currently, XRP is trading at $2.61, having recently confirmed a breakout from a descending channel on February 12. The price surged to $2.83 but encountered resistance at the 0.618 Fibonacci retracement level, which is at $2.77.
This level is critical for XRP, as a decisive break above it could lead to further price targets, including $3.05 and $3.40, which represent significant Fibonacci retracement levels. Market sentiment around XRP remains cautiously optimistic, with traders closely monitoring key support levels.
Future Outlook
The most critical support currently lies at the 0.5 Fibonacci retracement level around $2.58. If XRP manages to break through the resistance at $2.77, it could signal a bullish trend, attracting more investors and potentially driving the price higher. The interplay between RLUSD’s growth and XRP’s price dynamics reflects broader trends within the cryptocurrency market.
As regulatory developments and market sentiment continue to evolve, both RLUSD and XRP are positioned to be significant players. Their respective growth trajectories and market performances will draw attention from investors and analysts alike, making their journeys in the digital asset landscape ones to watch in the coming months.
📎 Related coverage from: bitcoinist.com
