- Ripple slows RLUSD minting as XRP trading volume surges, signaling strong market interest despite reduced issuance.
- XRP’s role in finance grows as regulatory clarity and adoption highlight its real-world utility over Bitcoin and Ethereum .
- Ripple’s cautious RLUSD strategy may reflect market conditions, ensuring demand-driven issuance amid evolving regulations
Cryptocurrency analyst Nick underscored the changing position of XRP in the banking ecosystem. Despite denunciations from Bitcoin and Ethereum’s camp, he noted that XRP has played a critical role in the crypto discourse.
Moreover, there have been many highs and lows throughout XRP’s journey. Although critics dubbed it a “bankers’ coin”, it eventually received regulatory clarification. A U.S. court declared in July 2023 that XRP was not a security . The maximalists of Ethereum and Bitcoin were thus confronted with a hard reality.
Ripple Slows RLUSD Minting While Trading Volume Surges
Ripple has slowed its RLUSD minting activity in recent days. The company created only small amounts, a shift from its previous trend. The last notable minting event occurred on February 10, when 1,050,000 RLUSD was minted in two transactions. Before that, Ripple Treasury issued 9.1 million RLUSD over two days.
However, despite the slowdown, RLUSD’s trading volume has increased by 35.66%. This surge suggests that market interest remains strong. Data from XRPscan shows that Ripple’s issuing address has minted only a few thousand coins recently. The reason for the reduced activity remains uncertain.
Market Conditions Could Be Influencing Ripple’s Strategy
Ripple’s decision to slow RLUSD minting could be influenced by market conditions. The circulating supply of RLUSD has reached 53.1 million, with no major increases in the past week. Consequently, Ripple may be taking a cautious approach, assessing demand before issuing more stablecoins.
The growing incorporation of XRP into the American financial system feeds speculation even more. This narrative is further supported by the present administration’s pro-crypto posture and the existence of regulators who are supportive of cryptocurrency. Therefore, in light of changing market and regulatory situations, Ripple’s approach might be a well-thought-out one.
The inefficiencies of Ethereum and Bitcoin become increasingly noticeable as XRP gets traction. As Ethereum and Bitcoin rejoice over the adoption of ETFs, XRP’s ecosystem is growing with practical applications. This change demonstrates how Ripple and its technology are becoming more and more relevant in traditional finance.
