The post Ripple Mints 800K RLUSD Stablecoins in a Day: Is Tether at Risk? appeared first on Coinpedia Fintech News
Ripple is making significant strides in the stablecoin sector, swiftly minting its RLUSD stablecoin and hinting at a potential market launch. This bold move positions Ripple to compete against industry giants like Tether. With 800,000 tokens minted, the competition for dominance is heating up.
With this aggressive minting strategy, Ripple is clearly aiming to disrupt the booming stablecoin market. Does Tether now have a target on its back? Let’s read on to know more.
Welcoming a New Phase for RLUSD
In a surprising turn of events, Ripple has minted 99% of its total RLUSD supply—approximately 800,000 tokens—in just one day, according to data shared by XRPL validator Vet. This marks a significant leap from the modest 100,000 tokens minted eight months ago, signaling that the RLUSD project has entered a critical phase.
Initially announced in April and currently in beta testing, RLUSD is now available exclusively to Ripple’s enterprise partners.
Ripple’s Ambitious Strategy
Ripple’s aggressive minting strategy comes at a time when the demand for stablecoins is surging, driven by their relative stability compared to riskier assets. The timing is crucial as Ripple eyes Tether’s dominant position, with the latter boasting a massive market cap of around $119 billion.
If RLUSD gains traction, it could disrupt the current stablecoin hierarchy, posing a direct challenge to established players like Tether.
XRP’s Current Position
Amid the buzz surrounding RLUSD, XRP has also posted impressive gains, despite the ongoing legal battle with the U.S. SEC. While the SEC is expected to appeal a recent court ruling in favor of Ripple by October 7, XRP’s price momentum remains robust. This reflects strong investor confidence in Ripple’s future, despite the looming legal challenges.
XRP’s recent price surge is accompanied by a sharp rise in open interest, which has jumped 67% since September 7 to $932.3 million—the highest level since April 2024. This increase, alongside rising prices, suggests a strong bullish trend. Additionally, demand for leveraged long positions is surging, with the perpetual futures funding rate climbing to 0.0113% for an eight-hour period, indicating growing optimism among traders.
The Road Ahead: Opportunities and Challenges
Monica Long, Ripple’s president, has hinted that the official launch of RLUSD could take place before the end of 2024, marking a major milestone for the company and potentially acting as a bullish catalyst for XRP. However, regulatory risks remain a significant concern.
The ongoing SEC case could complicate Ripple’s plans, and RLUSD will face stiff competition from well-established stablecoins like Tether and USD Coin, which currently dominate the market.
Will RLUSD be the next big thing in stablecoins? Let us know your take.