RLUSD supply grows 30% while USDT slips – Is XRP gaining a liquidity edge?

It seems that $RLUSD is on its own in introducing new liquidity into the market.

Interestingly enough, the timing couldn’t be more bullish.

As the market turns back to risk-on, stronger liquidity flows are an important sign of whether the momentum will hold as high-caps break resistance, profit-taking increases, and leverage begins to build. This is why DeFiLlama’s latest data is worth noting.

As the chart below shows, $RLUSD leads in capital flows over various timeframes, pushing its market cap to a new high above $2 billion.

To put this in perspective, $RLUSD’s monthly supply has grown by over 30% while USDT’s supply has declined by 0.4%. Interestingly enough, the same trend is visible when comparing $RLUSD’s flows with the other top 11 stablecoins.

Naturally, this momentum is already positioning XRPL in the spotlight.

According to the data from DeFiLlama, $RLUSD represents over 90% of all stablecoins on the $XRP Ledger and is up by more than 8% during the last 7 days. On the $XRP Ledger, $RLUSD’s total supply now exceeds $950 million.

By contrast, $RLUSD represents only 0.7% of stablecoins on the Ethereum blockchain, underlining its strength on XRPL.

Notably, the impact of this divergence is starting to appear in price action as well. The $XRP/$ETH ratio closed last week up over 17% (its best weekly performance since the beginning of the Q1 2025 cycle).

Therefore, the key question that emerges is: Can $RLUSD serve as a fundamental support for Ripple [$XRP] against Ethereum [$ETH] in this cycle?

$RLUSD’s liquidity surge puts $XRP’s market timing in focus

The timing of the $RLUSD surge is beginning to coincide with $XRP’s technical setup.

On the weekly chart, $XRP exploded higher by over 53%, piercing the $1.50 resistance zone and posting the strongest weekly rally among high-cap assets.

The 6% pullback this week has since reinforced rejection around $1.50, and the impact has already manifested itself in leverage. Over $1.18 billion in $XRP longs on Bitfinex have been liquidated.

As mentioned above, significant liquidity injections are of great importance in a market like this, where the dynamics of resistance, profit-taking, and leverage unwinding take place. $XRP’s technical layer is clearly checking all the three boxes, making the continued growth in $RLUSD supply even more important to watch.

From a technical perspective, the 30% increase in $RLUSD supply, its stronger growth compared to the other 11 stablecoins, and the fact that more than 90% of $RLUSD supply is on XRPL indicates increased liquidity on the network that could help absorb selling pressure and provide $XRP with a stronger foundation to build on.

Thus, while the bearish opening of the week for the $XRP/$ETH could still be too early for a full-fledged trend reversal, if the on-chain liquidity growth of $RLUSD persists, $XRP could have the liquidity support to re-claim $1.50 and resume its relative strength against $ETH.

In that case, the current pullback could be viewed as more of a reset than a trend reversal.

Final Summary