Ripple’s RLUSD Hits $76M on Aave in 4 Days as Market Cap Nears $317M

Ripple’s RLUSD stablecoin has witnessed a surge in activity, with deposits reaching $76 million on Aave in just four days. Following its addition to the Aave V3 Ethereum Core market on April 21, users have quickly engaged with RLUSD’s lending and borrowing options.

According to Aave, users can now supply RLUSD to earn interest, although it cannot yet be used as collateral. Meanwhile, the borrowing cap for RLUSD remains set at $10 million, a decision aimed at controlling risk exposure to the newly listed asset.

Due to these risk measures, RLUSD’s utilization rate currently stands at a relatively low 14.86 percent. Despite these initial limitations, RLUSD’s overall market capitalization has soared to $316,987,349, according to CoinGecko data.

Also Read: $128 Million XRP in One Day: Is a Massive Pump Underway? Here’s What Happened

Ripple’s Burn-to-Mint Strategy Strengthens RLUSD’s Cross-Chain Presence

According to a popular crypto tracker on X, Ripple recently carried out a burn-to-mint process involving 27 million RLUSD tokens. This mechanism allows Ripple to transfer tokens between the XRP Ledger and Ethereum without affecting RLUSD’s stable value.

Each transfer across different chains takes 20 seconds to complete through the XRP network, and small fees are charged. The token-burning process during the cross-chain movement does not reduce XRP or its supply level.

RLUSD currently operates on Ethereum and the XRP Ledger, with Ripple expecting to expand into the Cardano network in the future. RKUSD’s cross-chain features will enable additional market growth, which will stabilize the digital asset.

The Aave platform sets restrictive borrowing constraints as part of introducing RLUSD while assessing market activities. Ripple dedicates its technical resources to developing RLUSD through efforts that create strong liquidity and enhance cross-chain operation for its users.

RLUSD has established a significant presence on Aave’s platform because users have deposited $76 million while driving the token’s market capitalization to almost $317 million. Future development initiatives alongside strategic market extension strategies will strengthen RLUSD’s position in the developing stablecoin market.

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