Ripple USD (RLUSD) Volume Collapses 31%, What’s Happening?

Ripple USD (RLUSD) stablecoin has experienced sudden, brutal liquidations, raising concerns among investors. According to CoinMarketCap data, within the past 24 hours, RLUSD posted a 31% drop in trading volume.

Why is RLUSD bleeding?

Currently, RLUSD’s trading volume is pegged at $96.8 million, while its market cap remains at $316.9 million. Notably, RLUSD saw over $140 million trading the previous day, emphasizing investors’ declining interest in the asset.

The RLUSD stablecoin also saw its market capitalization decrease slightly by 0.03%. This drop suggests that users are not actively trading the asset, as it is still in its early adoption phase. RLUSD’s declining market cap now places the asset behind leading stablecoins like Tether (USDT) and Circle’s USDC.

The low interest in RLUSD is likely due to the latest XRP price recovery. XRP investors who previously shifted investments in RLUSD are probably rethinking their move, leading to the RLUSD plummeting in trading volume.

Within the past 24 hours, the price of XRP has increased by 2.5%. XRP is traded at $2.58 at press time, with the market cap pegged at $151 billion. However, like RLUSD, the trading volume is down over 36% to $5.6 billion.

RLUSD still gaining recognition

The latest slump in RLUSD’s trading volume comes as a surprise. During its initial emergence, the stablecoin saw a massive surge in trading volume. Earlier this month, U.Today reported that RLUSD’s trading volume had surged by over 37% in just 24 hours. Market analysts attributed the surge to the stablecoin’s global positioning.

Gemini, a major U.S. crypto exchange, listed RLUSD, providing liquidity boosts and broader market exposure to the stablecoin. RLUSD gained significant traction following its multiple use cases on the crypto and TradFi trading markets.

Notably, Ripple recently donated $25 million worth of RLUSD to two big U.S. education nonprofit organizations, DonorsChoose and Teach For America.

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