u.today
Ripple USD ($RLUSD) stablecoin has experienced sudden, brutal liquidations, raising concerns among investors. According to CoinMarketCap data, within the past 24 hours, $RLUSD posted a 31% drop in trading volume.
Why is $RLUSD bleeding?
Currently, $RLUSD’s trading volume is pegged at $96.8 million, while its market cap remains at $316.9 million. Notably, $RLUSD saw over $140 million trading the previous day, emphasizing investors’ declining interest in the asset.
The $RLUSD stablecoin also saw its market capitalization decrease slightly by 0.03%. This drop suggests that users are not actively trading the asset, as it is still in its early adoption phase. $RLUSD’s declining market cap now places the asset behind leading stablecoins like Tether (USDT) and Circle’s USDC.
The low interest in $RLUSD is likely due to the latest $XRP price recovery. $XRP investors who previously shifted investments in $RLUSD are probably rethinking their move, leading to the $RLUSD plummeting in trading volume.
Within the past 24 hours, the price of $XRP has increased by 2.5%. $XRP is traded at $2.58 at press time, with the market cap pegged at $151 billion. However, like $RLUSD, the trading volume is down over 36% to $5.6 billion.
$RLUSD still gaining recognition
The latest slump in $RLUSD’s trading volume comes as a surprise. During its initial emergence, the stablecoin saw a massive surge in trading volume. Earlier this month, U.Today reported that $RLUSD’s trading volume had surged by over 37% in just 24 hours. Market analysts attributed the surge to the stablecoin’s global positioning.
Gemini, a major U.S. crypto exchange, listed $RLUSD, providing liquidity boosts and broader market exposure to the stablecoin. $RLUSD gained significant traction following its multiple use cases on the crypto and TradFi trading markets.
Notably, Ripple recently donated $25 million worth of $RLUSD to two big U.S. education nonprofit organizations, DonorsChoose and Teach For America.