Ripple USD (RLUSD) has recorded a massive 327% leap in volume despite the broader cryptocurrency market downturn. CoinMarketCap data reveals that the stablecoin has also experienced relative price stability in the last 24 hours.
European demand fuels RLUSD surge
Notably, the 327% surge in trading volume places RLUSD at $203.22 million in dollar terms. The data shows that this spike in volume was largely driven by the Bitstamp exchange via the RLUSD/EUR and RLUSD/USD pairs.
This suggests that European users of RLUSD might primarily drive the current market surge.
The development is significant considering that Ripple halted stablecoin minting over a 10-day period recently. The pause had caused concerns as to the reasons behind it. Although some argued that it might have been a strategic decision, others felt the demand was low.
However, the recent spike in trading volume signals that users are engaged in cross-border transactions using RLUSD.
Comparatively, other leading stablecoins in USDT and USDC have not registered a similar spike in trading volume. The two stablecoins have grown at the 100 thresholds.
Tether’s USDT is currently up 126.67%, while Circle’s USDC is 133.59% in trading volume. This difference between the two top market leaders and RLUSD suggests users are embracing Ripple’s stablecoin.
XRP struggles amid RLUSD’s growth
Analysts say the current development suggests that Ripple’s RLUSD is gradually gaining traction on the stablecoin market.
However, the new entrant still has a lot of ground to cover and a market portion to seize.
Regarding market capitalization, RLUSD stands at an insignificant $53.1 million compared to USDT and USDC. USDT’s market cap is $142.23 billion, while USDC’s is $56.54 billion, which places them as the top two leaders on the market.
Meanwhile, despite the spike in RLUSD, the positive sentiment has not affected XRP, which, as of press time, was changing hands at $2.16, an 11.04% decline in the last 24 hours.
