Ripple Destroys Another 4 Million RLUSD Tokens

Ripple has carried out another significant burn of its Ethereum-based stablecoin, RLUSD, eliminating 4 million tokens from circulation within 24 hours. According to Ripple Stablecoin Tracker on X, the RLUSD Treasury sent the tokens to an unrecoverable address, permanently reducing the circulating supply.

This recent burn takes place during a period of reduced minting activity. No new RLUSD tokens have been created since April 25, when Ripple minted 23 million tokens. The pause marks weeks without issuance, a notable change from the company’s earlier pattern of steady supply expansion.

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Ripple actively increased RLUSD’s circulating supply in the weeks following this minting pause. The company minted 17 million tokens on March 28 and 50 million two times consecutively on 1st and 2nd April, bringing the total minted in such a short period to 117 million tokens.

Although token creation is frozen now, RLUSD still has a powerful presence in the market, as its total market capitalization is more than $300 million. The conscious liquidation of tokens, with no new minting, indicates a change in Ripple’s strategy regarding controlling the supply of the stablecoin.

Token Burn May Indicate Planned Utility Expansion

The decision to burn millions of RLUSD tokens without replenishing the supply could be tied to a broader utility rollout. According to the Ripple Stablecoin Tracker on X, there are signs that RLUSD is preparing for an expansion in usage across more platforms and services.

This shift suggests Ripple may be aligning supply management with upcoming developments. By depleting the available supply before a utility expansion, the company could be trying to make the token seem more stable and in demand. The absence of minting represents a more guarded attitude to the balance in the markets.

The Ripple Stablecoin tracker confirms no new tokens have been added since the April 25 mint, which supports the idea that Ripple is being deliberate. Although no official statement has been heard, moves made by the Treasury and market information indicate the changing supply strategy.

Destroying 4 million RLUSD tokens highlights Ripple’s continued commitment to managing its stablecoin ecosystem precisely. While the mint is still paused and the signs of utility expansion continue to strengthen, the market is watching what happens to RLUSD next.

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