Ripple's stablecoin RLUSD has reached a significant milestone of $3 billion in monthly transaction volume. This growth was noted by crypto analyst X Finance Bull, who highlighted a key detail: every RLUSD transaction burns XRP.
Launch and Success of RLUSD
RLUSD was launched in late 2024 with regulatory approval from the New York Department of Financial Services. This US dollar-backed stablecoin built on the XRP Ledger quickly gained traction across crypto exchanges, wallets, and on-chain applications. Its adoption marks one of the most aggressive expansions for any stablecoin in the ecosystem.
XRP Burn Mechanism
Every transaction on the XRP Ledger, including those involving RLUSD, incurs a small fee paid in XRP. This fee is permanently burned, effectively reducing the total supply of XRP over time. While the burn per transaction is tiny, it becomes more significant when scaled across billions of dollars in monthly volume.
Impact on XRP and Future of the Coin
Reaching $3 billion in monthly volume marks a pivotal moment for RLUSD and XRP. If RLUSD continues on this trajectory, scaling into tens or hundreds of billions, the associated XRP burn may become a critical factor in the token's long-term value. This achievement signals an evolving role for XRP in a growing on-chain economy.
RLUSD demonstrates impressive growth in the market, creating conditions for increased demand for XRP. This highlights the importance of stablecoins in the cryptocurrency ecosystem and their potential to reduce the supply of main tokens.
