What to know:
- RLUSD has grown from less than 1% to nearly 12% of XRP Ledger trading activity in under 18 months, fueling speculation about its long-term role in the ecosystem.
- According to Evernorth, every RLUSD transaction still relies on XRP for settlement and network fees, meaning increased stablecoin usage also boosts XRP’s utility.
- The RLUSD/XRP pair has processed nearly $900 million in six months, while over half of RLUSD’s supply now resides on the XRP Ledger.
The growth of Ripple’s RLUSD stablecoin has prompted rising speculation that it could eventually overtake XRP within the XRP Ledger ecosystem. However, Evernorth, the largest XRP treasury firm, has explained that this is not the case.
According to the firm, RLUSD’s growth does not weaken XRP’s role because every trade continues to rely on XRP for settlement and transaction fees, increasing its utility across the network.
RLUSD Growth Raises Questions About XRP’s Future Role
According to new data presented by Evernorth, RLUSD represented less than 1% of trading activity involving XRP less than 18 months ago. Since then, its share has climbed to nearly 12%, making it one of the fastest-growing assets on the XRP Ledger.
The data has fueled speculation that RLUSD could eventually overshadow XRP. However, Evernorth XRP said the stablecoin does not compete with XRP because both assets serve different purposes within the network.
The firm explained that traders increasingly use RLUSD when they want dollar-denominated exposure on the XRP Ledger. Nevertheless, every RLUSD transaction still settles using XRP.
Additionally, every completed trade requires XRP to pay the network fee, linking the stablecoin’s growth directly to XRP activity. Evernorth XRP added that this relationship creates more utility for XRP as trading volumes expand. Instead of replacing XRP, RLUSD increases the amount of value moving across the ledger while relying on XRP to facilitate settlement.
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What You Should Know About RLUSD and XRP
Evernorth explains that RLUSD’s rapid growth does not mean it is replacing XRP on the XRP Ledger. Instead, the stablecoin depends on XRP to perform essential network functions that keep transactions moving efficiently.
Every RLUSD trade settles through XRP, while each completed transaction also consumes a fee paid in XRP. As a result, higher RLUSD trading volumes generate additional activity for the XRP Ledger rather than reducing XRP’s role.
Evernorth also revealed that the RLUSD/XRP trading pair has processed nearly $900 million in trading volume over the past six months, creating a much deeper dollar market than existed 18 months ago.
Furthermore, more than half of RLUSD’s total supply now resides on the XRP Ledger, compared with approximately 17% in April. According to the firm, these developments demonstrate that RLUSD is strengthening liquidity and expanding ecosystem participation while XRP continues to serve as the settlement asset and fee token underpinning every transaction.
Conclusion
RLUSD’s rapid expansion continues to deepen dollar liquidity on the XRP Ledger, but its growth does not diminish XRP’s role within the network. Instead, the stablecoin relies on XRP for transaction settlement and network fees, reinforcing XRP’s position as the asset that powers activity across the XRP Ledger while supporting a growing ecosystem.
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