As a seasoned researcher with years of experience observing and analyzing the cryptocurrency market, I must admit that the impending launch of Ripple Labs’ RLUSD stablecoin has piqued my interest significantly. The volume of mints and subsequent burns by Ripple suggest that we might be on the cusp of seeing this USD-backed token in action.
In approximately a few weeks, it looks like Ripple Labs’ stablecoin, RLUSD (backed by USD), might be launched based on the amount of minting they are currently doing. So far, Ripple has minted 42 million units of this stablecoin from their RLUSD Treasury. As per the Ripple Stablecoin Tracker, the latest mint was 504 RLUSD on October 6. Following that, Ripple has conducted a series of RLUSD burns on the chain.
On October 6th, a blockchain company based in San Francisco destroyed 115 units of RLUSD. Over the past 24 hours, 240 RLUSD were burned in two separate instances, each consisting of 120 tokens. Previously, two sets of 115 tokens had been burned using the same process.
Ripple Mints RLUSD in Millions
Initially, Ripple started creating this stablecoin using small amounts on the XRP Ledger and Ethereum‘s primary network. Over time, they transitioned to producing larger quantities of it.
Initially producing approximately 50,000, 100,000, and 480,000 units of RLUSD, the company dramatically increased production to mint millions. On October 4, Ripple reached its largest single mint of 10 million RLUSD. Following a sequence of RLUSD minting events, Ripple has now started destroying (or burning) the USD-backed stablecoin instead.
Over the past 53 days, my research has shown that our platform has registered approximately 1100 instances of RLUSD either being burned or transferred to inactive wallets. These actions are a part of the private beta testing phase for our stablecoin. Ripple, as we all know, has encouraged us all to stay alert, keeping an eye out for potential scammers attempting to deceive us using fake RLUSD and Ripple tokens.
As an analyst, I’m currently observing that RLUSD, a potential investment option, remains unavailable for individual purchases or trades at the moment. Notably, Ripple’s Chief Technology Officer, David Schwartz, has shared insight into its initial release strategy, stating that RLUSD will initially be accessible only to institutional investors.
With excitement building around the upcoming launch of the stablecoin, members of the community have been taken aback by a surprising announcement from the blockchain company. Ripple has informed its users that RLUSD will become available exclusively on the Ethereum mainnet this year, leaving those eagerly awaiting its arrival on XRPL feeling let down.
If we opt to advance the RLUSD release on the XRPL to 2024, there’s a risk that it might lack essential features and functionalities. Among these is the Automated Market Maker (AMM), which could impose limitations on the DEX orderbook rather than the XRPL’s native orderbook system.
RLUSD and SHI to Compete with USDC and USDT
With the impending release of RLUSD, the potential for it to rival USDT and USDC is becoming increasingly imminent. Here’s a brief snapshot of how these two stablecoins are currently performing:
Right now, USDT is leading the stablecoin market, with USDC coming in second at a noticeable distance. The arrival of RLUSD could potentially shift this balance and alter the dominant players. Ripple’s past success in facilitating cross-border transactions via XRP might provide an edge for RLUSD to prosper.
The upcoming months could see an increase in competition, as Shiba Inu is also planning to introduce their own stablecoin, tentatively named SHI. At this point, the SHI stablecoin is still in the development phase and has yet to undergo any testing.
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2024-10-08 15:20