- A report by CyptoQuant has revealed unprecedented growth in the stablecoin market with the total market cap of major stablecoins reaching $169 billion.
- Ripple’s RLUSD is set to debut at a time when the stablecoin market is flourishing.
Ripple has been a hot topic in the cryptocurrency industry following its various developments. Among those, one of the most eagerly awaited projects is the Ripple Stablecoin, RLUSD. As Ripple prepares to launch its RLUSD stablecoin, the market for stablecoins is experiencing a surge in liquidity, which has hit a record high.
Currently, RLUSD which is in the beta phase is expected to disrupt the stablecoin industry.
Ripple has strategically expanded its operations into the stablecoin market through its recent acquisition of Metaco, a renowned digital asset custody firm. This acquisition positions Ripple to become a prominent player in both the custody and stablecoin sectors. T
The company intends to leverage RLUSD, its stablecoin, to revolutionize remittances and money transfers. By utilizing the XRP Ledger (XRPL) and Ethereum networks, Ripple aims to streamline cross-border transactions, offering a more efficient and cost-effective solution for users.
Reminiscing, as per our earlier report, Ripple revealed its intentions to enter the stablecoin market in April. Valued at $150 billion then, the market is expected to soar to a staggering $2.8 trillion over the next four years. This could be a pivotal moment for Ripple, signaling a major shift in the landscape.
Fast forward to August, the RLUSD stablecoin entered its beta testing phase on both the Ethereum network and XRPL, where millions of tokens have already been minted and burned. Ripple’s CEO confirmed last month that the full-scale launch of RLUSD is imminent and is expected to happen in a matter of weeks.
Ripple’s upcoming RLUSD launch coincides with a period of unprecedented growth in the stablecoin market. A report by CryptoQuant reveals that by late September 2024, the gross market cap of major stablecoins had reached $169 billion, marking a $40 billion increase year to date.
The rising balances of stablecoins have evidenced the liquidity boost on exchanges, with USDT, recording significant gains. As of October, USDT balances on Ethereum’s ERC20 network had surged to $22.7 billion, representing a 54% increase since the start of the year. Similarly, USDT balances on the TRON network reached $8.5 billion, held entirely on centralized exchanges.
Notably, USDT continues to dominate the stablecoin market, accounting for 71% of total stablecoin market capitalization. With a market cap nearing $120 billion, USDT has seen a 30% increase YTD. Meanwhile, Circle’s USDC, which follows with a 21% market share, boasts a $36 billion market cap, a 44% growth YTD. The combined market cap growth of USDT and USDC has significantly contributed to the liquidity surge in the crypto ecosystem.
In the same vein, According to CryptoQuant, the rising liquidity in the stablecoin market often correlates with higher prices for Bitcoin and other cryptocurrencies
