As someone who has witnessed the crypto market’s evolution over the years, I can confidently say that Ripple’s foray into stablecoins is a strategic move that aligns with the current market trends. The surge in demand for stablecoins and their role in bolstering overall liquidity is undeniable, as evidenced by the growth of Tether (USDT) and USD Coin (USDC).
With Ripple dipping its toes into the development of a novel stablecoin, the overall cryptocurrency market is seeing a significant surge in liquidity, primarily fueled by an increase in the use of stablecoins.
Significantly, Ripple is about to break into the stablecoin market with the upcoming release of Ripple USD (RLUSD). Ripple’s president, Monica Long, has confirmed that the project will be launched this year.
At this stage, we’re conducting beta trials, with over 9 million RLUSD tokens being generated and annulled on both the XRP Ledger and Ethereum blockchain systems.
💵💵💵💵💵💵 6,200,000 #RLUSD minted at RLUSD Treasury.
— Ripple Stablecoin Tracker (@RL_Tracker) October 4, 2024
Ripple’s stablecoin aims to meet the rising need in the stablecoin sector, providing improved liquidity and efficiency as a key objective. The increasing desire for stablecoins can be seen by the boost in liquidity observed within the market.
As per the latest weekly report from CryptoQuant, by late September 2024, the combined market capitalization of prominent USD-pegged stablecoins amounted to a staggering $169 billion. This substantial growth marks a year-to-date increase of 31%, injecting an impressive $40 billion into the market’s liquidity pool.
These digital coins, such as Tether (USDT) and USD Coin (USDC), are taking the forefront, significantly contributing to the total cryptocurrency market’s fluidity.
Tether’s USDT, the biggest stablecoin based on market value, has seen a surge of $28 billion since the beginning of the year, now standing at $120 billion. This expansion occurred even amidst regulatory hurdles presented by MiCA, as Coinbase intends to remove this asset from its European offerings.
As a researcher examining the digital currency landscape, I find it fascinating to observe that USDT currently holds a dominant 71% share of the stablecoin market with a valuation of $120 billion. Meanwhile, Circle’s USDC, a fully MiCA-compliant coin, is trailing closely behind with a market cap of $36 billion – marking an impressive 44% growth in 2024. Notably, Ripple has confirmed that its upcoming RLUSD will adhere to regulatory requirements.
The increase in stablecoin liquidity is significantly influencing centralized exchange platforms. At this moment, USDT reserves on these sites are at their peak, holding approximately $22.7 billion on the Ethereum network alone, representing a 54% increase since the start of the year.
Moreover, approximately $8.5 billion in USDT, a stablecoin, is held on centralized trading platforms through the TRON network. Typically, a larger amount of stablecoins stored on these exchanges can lead to increased values for Bitcoin (BTC) and other digital currencies.
Nevertheless, with an increase of 20% in USDT balances on exchanges since August 2024, Bitcoin’s price has remained fairly stable, not showing significant growth.
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2024-10-10 12:40