- Ripple USD proves resilient as $19B crypto liquidation shakes markets.
- RLUSD maintains dollar peg while other stablecoins falter under pressure.
- Ripple’s Bahrain partnership strengthens confidence in its expanding stablecoin ecosystem.
The crypto market faced one of its most turbulent moments as over $19 billion in leveraged positions were liquidated during the Oct. 10 flash crash. This massive event surpassed the liquidation seen during the FTX collapse, marking the largest in crypto history. Funding rates tumbled to their lowest levels since the depths of the 2022 bear market, reflecting extreme volatility and panic across exchanges.
Amid the chaos, several stable assets temporarily lost their dollar peg, intensifying fears of a systemic breakdown. Ethena’s synthetic dollar, USDe, experienced a sharp drop to $0.65 on Binance during the sell-off, highlighting the fragility of algorithmic-backed stablecoins in moments of severe market stress.
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Ripple USD Maintains Stability and Gains Ground
While most assets faltered, Ripple USD (RLUSD) maintained its $1 peg throughout the sell-off. This marked its first major stress test since launching in December 2024, and it emerged unshaken. The stable performance strengthened market confidence in RLUSD’s structure and operational backing, distinguishing it from peers that briefly lost parity.
Consequently, RLUSD ascended in the top 100 cryptocurrencies by market capitalization. At press time, it ranked 82nd with a valuation of $840.86 million, overtaking DeFi token Curve Dao (CRV). This achievement reflected growing trust and steady adoption among institutional and retail holders.
Ripple’s Expansion Boosts Stablecoin Confidence
Besides, RLUSD’s market climb was supported by Ripple’s strategic expansion efforts. Last week, Ripple announced a partnership with Bahrain’s Fintech Bay to promote crypto adoption and introduce Ripple Custody alongside RLUSD to key financial institutions in the Middle East. This collaboration is expected to drive further integration of Ripple’s ecosystem across the region’s financial sector.
A Sign of Resilience Amid Market Volatility
Hence, Ripple’s ability to sustain RLUSD’s peg amid widespread volatility positions it as a resilient contender in the stablecoin market. The asset’s stability during extreme conditions reinforced its credibility and hinted at stronger institutional confidence ahead.
As the broader crypto market seeks recovery from the flash crash, RLUSD’s steady performance offers a rare glimpse of stability in an otherwise turbulent landscape. Its ability to maintain balance when other stablecoins wavered could mark a turning point for Ripple’s growing influence in digital finance.
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