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Ripple's stablecoin treasury has performed a massive string of token burns. Millions of $RLUSD in a matter of hours.
According to the latest data compiled by the Ripple Stablecoin Tracker, the treasury recently executed a massive burn of 26 million $RLUSD on Thursday afternoon.
This was just one of several large-scale transactions that rapidly removed supply from circulation across both the Ethereum and $XRP Ledger networks.
The sudden reduction in supply has caught the attention of the crypto community.
The Thursday burn
On March 26, 35 million tokens were removed from the market during a relatively short timeframe.
The tracked burns include the massive initial 26 million $RLUSD transaction on the Ethereum network. It was followed shortly by a 5 million $RLUSD burn.
Additional burns of 2.9 million $RLUSD, 1.9 million $RLUSD were then recorded via the XRPScan service.
Stablecoin issuers routinely mint and burn tokens to manage active supply and maintain their peg.
When users or institutions redeem their $RLUSD for underlying U.S. dollars, Ripple burns the corresponding digital tokens to keep the ledger balanced.
Healthy liquidity management or something else?
After the market cap of the high-flying stablecoin swelled to $1.6 billion, it then shrunk down to the $1.4 billion range within a relatively short span of time.
Prominent crypto lawyer and $XRP community commentator Bill Morgan recently noted on X that it "seems to have passed largely unnoticed that there has been a large volume of $RLUSD that has been burnt over the last two weeks.
He has asked the community whether this is simply healthy liquidity management or something else entirely.
"The graph shows that this two-week period is largely different from what has happened so far. This is not a noticeable drop from a single burn but from a series of burns within a short period of time," he said.