Ripple's RLUSD stablecoin has experienced a remarkable 2000% increase in trading volume, reaching $612.85 million shortly after its launch. This has garnered the attention of both investors and analysts.
Surge in RLUSD Trading Volume
According to CoinMarketCap, RLUSD quickly became the fourth most-traded stablecoin with a market cap of $53.1 million. However, skepticism surrounds the authenticity of these figures due to the brief time since its introduction.
Analysis of Trading Activity
A significant portion of the trading volume—over 96%—is attributed to the cryptocurrency exchange Bullish, which recently listed six trading pairs involving RLUSD. Concerns have been raised by XRP Ledger validator Vet regarding the high trading volume on the RLUSD/USD pair, suggesting that it may be driven by a few large players rather than widespread market activity.
Expert Opinions on Price Fluctuations
Ripple's Chief Technology Officer, David Schwartz, cautioned investors about potential price volatility. He noted that supply shortages could cause temporary price spikes above the $1 peg, with early bids valuing RLUSD as high as $1,244—an astonishing 1,200% premium. Schwartz attributed this enthusiasm to buyers seeking the prestige of being among the first to acquire RLUSD, but he warned that such inflated valuations are likely unsustainable.
The surge in RLUSD trading volume has sparked interest and discussions within the crypto community. Questions about the true nature of its trading dynamics and stability continue to emerge, providing analysts and investors with a basis for further exploration.
