The post Ripple Mints 800K RLUSD Tokens: Is Tether’s Dominance at Risk? appeared first on Coinpedia Fintech News
Ripple is making bold moves in the stablecoin sector, rapidly minting its RLUSD stablecoin and signaling a potential market launch. This strategic leap forward raises questions about its competitive positioning against established players like Tether. With 800,000 tokens created, the race to challenge Tether heats up. Is this the next big challenge to Tether in the stablecoin space?
A Historic Minting Event
The total supply of RLUSD is 812,034 across ETH and XRPL.In the last ~24h in total 800k RLUSD got minted on Ethereum and #XRP Ledger combined.99% of the total supply was minted in the last 24h.
— Vet (@Vet_X0) September 29, 2024
In a surprising development, Ripple has minted 99% of the total RLUSD supply—approximately 800,000 tokens—within just one day the data shared by XRPL validator Vet. This dramatic increase follows a much smaller minting of only 100,000 tokens eight months ago, indicating that the RLUSD project is entering a crucial phase. Initially announced in April and currently in beta testing, RLUSD is now available solely to Ripple’s enterprise partners.
Challenging Tether’s Dominance
Continuing on its aggressive minting strategy, Ripple wants to hit the booming stablecoin market, which has seen increasing demand due to the stability of assets like RLUSD compared to more risky assets in the past. However, the timing of this initiative is critical as Ripple sets its sights on Tether, which holds a staggering market cap of around $119 billion. Ripple’s entrance into the stablecoin race could disrupt the existing market, especially if RLUSD achieves widespread adoption.
XRP’s Current Position
With recent RLUSD buzz, XRP has shown remarkable performance, even amidst ongoing uncertainties regarding its legal battle with the U.S. SEC. While the SEC is expected to appeal by October 7 on a recent court ruling favoring Ripple. In the meanwhile, XRP’s price momentum remains strong, suggesting investor confidence in the company’s future.
Moreover, XRP’s price surge is moving, with open interest jumping 67% since September 7 to $932.3 million—its highest since April 2024! This rise, paired with increasing prices, suggests a strong upward trend ahead. Plus, demand for leveraged long positions is surging, with the perpetual futures funding rate climbing to 0.0113% for an eight-hour period. Traders are definitely feeling bullish.
The Road Ahead: Opportunities and Challenges
Monica Long, Ripple’s president, hinted that RLUSD’s official launch could occur before the end of 2024, marking a significant milestone for the company and seeming like a bullish catalyst for XRP. However, regulatory risks remain a pressing concern, with the ongoing SEC case potentially complicating Ripple’s plans. Plus, RLUSD will face competition from established stablecoins like Tether and USD Coin, which currently dominate the market.
