Ripple’s RLUSD Crashes 60% as Minting Halts and XRP Volume Surges 75%

Ripple’s stablecoin RLUSD has seen its trading volume collapse by over 60 percent within 24 hours, falling to $44.63 million. This sharp drop has been linked to a complete pause in minting activity, which has now continued for more than 41 days.

The sudden fall in RLUSD demand is raising concerns about liquidity levels on the XRP Ledger, especially across decentralized exchanges and dApps. With no new RLUSD tokens entering circulation, users and developers relying on the stablecoin are pulling back, shifting focus to other assets like USDT and USDC.

Besides a lower trading volume, Ripple has still not explained the extended suspension of minting. Market watchers believe the decision may be strategic, possibly intended to manage the stablecoin’s supply amid weak demand.

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XRP Defies Stablecoin Slump with Strong Market Activity

Notably, the declining activity around RLUSD has not negatively impacted XRP. Instead, the native asset of the Ripple ecosystem has experienced a significant boost in investor engagement. Trading volume for XRP has jumped by 75.12 percent in the same 24-hour window, hitting $3.51 billion.

This increase in XRP activity suggests that the token is decoupling from RLUSD and building momentum on its own. Although RLUSD is being used less, XRP continues to help with cross-border payments and maintaining enough liquidity.

XRP suffered a slight 0.28 percent loss, pushing its value to $2.18, yet it rebounded from a low of $2.08, showing increased market confidence in the asset.

Confirming Dubai’s approval to use Ripple in its banking industry may boost investor confidence. Clearance may also allow the company to develop its ecosystem further and restore interest in RLUSD.

While interest in RLUSD is decreasing, XRP’s activity in the market highlights how important it has become. Stablecoins are not performing well right now, but the market is focusing on XRP instead.

Also Read: Apple in Secret Talks to Add Stablecoins as Crypto Moves Closer to iPhones

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