Ripple USD trading volume hit $611 million, ranking it as the fourth most-traded stablecoin despite a $53 million market cap.
Bullish exchange, responsible for 96% of RLUSD's trading, fuels speculation about Ripple products driving trading activity.
Ripple has plans to make an attestation report for January to explain the asset backing of RLUSD.
Ripple USD (RLUSD), which represents Ripple’s own stablecoin, has seen its trading volume grow by a mind-bending 2,000%. RLUSD is ranked fourth among stablecoins by trading volume of $611 million by CoinMarketCap, and a market cap of $53 million.
The cryptocurrency community has taken a keen interest in the increase in trading volumes of RLUSD. The audience of social media has raised certain doubts as to the authenticity of the data by asking if it is possible to achieve such steep growth in such a short time.
Dominance of Bullish Exchange
Bullish, a cryptocurrency exchange funded by PayPal co-founder Peter Thiel currently contributes more than 96% to RLUSD’s 24-hour trading volume. Last week, the platform introduced six trading pairs featuring RLUSD, which contributed significantly to the surge.
Despite this, liquidity for the RLUSD/USD trading pair on Bullish remains low. Market observers suggest that a handful of large transactions by major players may be responsible for the dramatic trading volume increase.
A validator on the XRP Ledger (XRPL), identified as Vet, noted the difficulty in distinguishing between trading driven by Ripple’s ecosystem and activity from independent users. He emphasized that the staggering figures could be more reflective of Ripple’s products rather than widespread market adoption.
Additional Minting Activity
Ripple recently minted an additional 600,000 RLUSD tokens, further fueling speculation about its trading activity. The company plans to release an attestation report this January, which will detail the assets backing the stablecoin. This report is expected to offer greater clarity and transparency regarding RLUSD’s underlying value.
The rapid rise in RLUSD's trading volume, coupled with questions about its liquidity and activity concentration, highlights the complexities of the cryptocurrency market. As Ripple continues to expand its stablecoin offerings, the forthcoming transparency report could play a crucial role in addressing concerns and shaping the market’s perception of RLUSD.
