Ripple Labs has restarted the production of its dollar-pegged stablecoin, RLUSD, following a 7-day pause on the XRP Ledger and Ethereum.
RLUSD Production Resumption
According to Ripple Stablecoin Tracker data, the company has introduced 6,500,000 RLUSD into circulation. This move is considered a response to increasing market demand and part of strategic issuance plans. The new issuance, conducted via the Ethereum blockchain, indicates Ripple's active use of two different networks in its issuance process. The previous issuance occurred on March 7, releasing 2,300,000 RLUSD.
Market and XRP Impact
Amid widespread use of stablecoins in the crypto market, the issuance of RLUSD could enhance market liquidity. This development may increase token trading volumes, helping Ripple to stay ahead of some competitors. Ripple has successfully raised RLUSD’s total circulating supply to approximately 141.49 million. On the other hand, indirect effects on XRP's price movements are anticipated, with market volatility and regulatory developments remaining uncertain.
Ripple Labs Strategic Moves
Ripple Labs' recent actions are viewed as a strategic maneuver within the competitive landscape of the stablecoin market. The increase in production provides valuable insights into responding to market demand and regulatory compliance. The listing of RLUSD on various platforms like Revolut and Zero Hash facilitates greater accessibility for the token.
The resumption of RLUSD issuance indicates Ripple Labs’ confidence in market conditions and potentially strengthens their position in the stablecoin sector, despite uncertainties in regulation and market volatility.
