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Ripple USD ($RLUSD) has recorded a massive 327% leap in volume despite the broader cryptocurrency market downturn. CoinMarketCap data reveals that the stablecoin has also experienced relative price stability in the last 24 hours.
European demand fuels $RLUSD surge
Notably, the 327% surge in trading volume places $RLUSD at $203.22 million in dollar terms. The data shows that this spike in volume was largely driven by the Bitstamp exchange via the $RLUSD/EUR and $RLUSD/USD pairs.
This suggests that European users of $RLUSD might primarily drive the current market surge.
The development is significant considering that Ripple halted stablecoin minting over a 10-day period recently. The pause had caused concerns as to the reasons behind it. Although some argued that it might have been a strategic decision, others felt the demand was low.
However, the recent spike in trading volume signals that users are engaged in cross-border transactions using $RLUSD.
Comparatively, other leading stablecoins in $USDT and $USDC have not registered a similar spike in trading volume. The two stablecoins have grown at the 100 thresholds.
Tether’s $USDT is currently up 126.67%, while Circle’s $USDC is 133.59% in trading volume. This difference between the two top market leaders and $RLUSD suggests users are embracing Ripple’s stablecoin.
$XRP struggles amid $RLUSD’s growth
Analysts say the current development suggests that Ripple’s $RLUSD is gradually gaining traction on the stablecoin market.
However, the new entrant still has a lot of ground to cover and a market portion to seize.
Regarding market capitalization, $RLUSD stands at an insignificant $53.1 million compared to $USDT and $USDC. $USDT’s market cap is $142.23 billion, while $USDC's is $56.54 billion, which places them as the top two leaders on the market.
Meanwhile, despite the spike in $RLUSD, the positive sentiment has not affected $XRP, which, as of press time, was changing hands at $2.16, an 11.04% decline in the last 24 hours.