u.today
Ripple stablecoin ($RLUSD) has seen a sharp drop in volume by over 57% as user demand has declined dramatically. CoinMarketCap data reveals that in the last 24 hours, trading volume has plummeted by a massive 60.14% to $44.63 million.
$RLUSD demand dives amid halt in minting activity
The development has sparked debate on how much it could impact $XRP, the ecosystem’s native token. Notably, the stablecoin's low demand suggests that users who once flocked to $RLUSD as an alternative to Tether’s USDT and Circle’s USDC might be pulling back.
This could imply limited liquidity on the $XRP Ledger (XRPL) based on decentralized exchanges and dApps. Low demand might have been responsible for Ripple's lack of stablecoin activity for the past three weeks.
According to a U.Today report, Ripple Labs, the blockchain payment giant, has not minted $RLUSD for over 41 days. The recent drop in volume confirms the analysis that Ripple might have halted the process to maintain supply.
Despite being Ripple’s associated currency, $XRP operates on its positive fundamentals and remains independent of $RLUSD. Although it is used for cross-border payments, it will likely not suffer any huge impact from the slip in $RLUSD volume.
$XRP decouples despite $RLUSD uncertainty
As of press time, the $XRP price was changing hands at $2.18, representing a 0.28% decline in the last 24 hours. The asset is on a rebound journey and has climbed from $2.08 to its current level. Investors in the ecosystem support $XRP’s journey as trading volume has surged by a remarkable 75.12% to $3.51 billion.
This indicates that although $RLUSD has suffered volume collapse, $XRP has decoupled from it and is flashing a bullish signal.
It is also likely that $RLUSD’s current volume slip is temporary as the broader market signals a trend shift for the stablecoin. Ripple recently received regulatory approval in Dubai, a development that could support improved ecosystem performance in the coming days.