Instead of primarily using Ripple‘s stablecoin (RLUSD) on the XRP blockchain, it’s now mainly employed on the Ethereum blockchain, according to a report from an XRP contributor known as “Vet_X0.” Currently, there are $61,823,274 worth of RLUSD tokens being circulated on Ethereum, significantly surpassing the $21,995,883 held on the XRP Ledger.
The 1:3 ratio underscores Ethereum’s increasing significance within the stablecoin framework, potentially causing dismay among XRP supporters who viewed Ripple USD as a means to broaden the XRP Ledger system.
In simpler terms, the growing role of Ethereum in the stablecoin market might upset some XRP fans, who believed that Ripple USD was a way to expand the XRP platform.
The primary reason for this significant disparity is because Ethereum boasts a well-established ecosystem, which allows ERC-20 tokens to be widely utilized across the cryptocurrency market. This widespread acceptance means that numerous exchanges, particularly larger ones, can easily incorporate Ethereum-based assets. As a result, RLUSD on Ethereum enjoys an infrastructure that facilitates smooth transactions, receipt, and listing of tokens.
It’s highly practical, which likely accounts for Ethereum’s current control over RLUSD distribution, despite the fact that the XRP Ledger is still crucial to Ripple’s overall functions.
The distribution of funds shows a total of approximately $61,823,274 on the Ethereum network and about $21,995,883 on the XRP Ledger. Currently, there’s an almost 1:3 ratio between the two platforms, making it intriguing to observe how the demand for each chain develops over time.
— Vet (@Vet_X0) January 9, 2025
Some individuals believe this situation arises from a phased launch plan. Although they possess the facilities to accommodate RLUSD, certain platforms such as Bitstamp (partially owned by Ripple) appear to be adopting a more reserved stance, likely waiting for public acceptance of the stablecoin and clarification on the regulatory environment before proceeding.
Currently, the usage of RLUSD is on an upward trend, as indicated by CryptoQuant’s data, showing consistent growth in activity. Experts anticipate this increase to accelerate further. Being compliant with MiCA regulations in the European Union gives RLUSD a competitive edge, as the European market has stricter standards compared to the U.S. market.
Nonetheless, Ripple USD’s objective is to secure a substantial share of the potential $2.8 trillion market that lies ahead.
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2025-01-09 18:52