- Ripple burns millions of RLUSD tokens, boosting market activity sharply.
- BitMEX launches XRP quarterly futures, expanding crypto derivatives options.
- RLUSD supply reduction maintains $1 peg, strengthening investor confidence.
Ripple has caused a stir in the stablecoin market by burning over 2.7 million RLUSD tokens, leading to a noticeable surge in market activity. On September 9, the company sent the tokens to a null address on Ethereum, marking the most significant single burn event since late August. This burn is part of Ripple’s ongoing strategy to maintain balance in its RLUSD supply.
Ripple already eliminated nearly six million RLUSD tokens in the last two weeks in a series of massive burns. These involve the two individual burns of 1 million RLUSD tokens that were implemented on September 3 and August 29.
These burns have become a common aspect of Ripple’s strategy to ensure that the supply of RLUSD is maintained at the level of fiat reserves that support it. The mechanism holds RLUSD at the $1 peg, allowing the traders and users a stable and predictable digital asset.
Ripple’s continued activity in controlling the supply of RLUSD demonstrates the company’s transparency and stability. When there is an increase in demand, Ripple will issue new stablecoins.
When there is a redemption or excess supply, it will conduct burns such that an equal quantity of fiat always supports the amount of tokens in circulation. This assists in the preservation of the token value and increases trust between investors and users.
Also Read: Shiba Inu Set to Explode: Analyst Predicts 165% Gain in Upcoming Rally
Ripple’s Token Burn Strategy Strengthens RLUSD’s Stability
Ripple’s approach of issuing new stablecoins when demand rises and burning excess tokens when redemptions occur helps maintain the $1 peg of RLUSD. This balances the overall supply of the stablecoin with the dollar reserves, which keeps its value constant. Currently, RLUSD’s market capitalization is $728 million, with daily trading volumes reaching $84 million, more than doubling compared to the previous day.
Besides the burns, Ripple’s liquidity is distributed across a wide range of centralized and decentralized exchanges. USDC/RLUSD trading is picking up steam on the major exchanges, and Uniswap V3 and Curve are still providing stablecoin routes through which liquidity can be obtained. Also, RLUSD can be traded on platforms like Bitstamp and LMAX Digital on large fiat and crypto pairs, which increases its availability.
The recent burn events have generated enthusiasm in the market, and traders and investors are keeping a close eye on Ripple’s activities. This continuous mode of printing and burning tokens proves that Ripple is dedicated to ensuring the stability of RLUSD and reinforcing its role in the stablecoin market.
BitMEX Introduces XRP Futures Contracts, Expanding Trading Options
In a related development, the BitMEX exchange, one of the leading platforms for trading crypto derivatives, has launched a new set of quarterly futures contracts, including for XRP. The contracts became active earlier this Tuesday, and traders could speculate on the price of XRP without actually possessing the underlying asset.
Such quarterly futures do not have the same perpetual swaps that expire at set dates. To take an example, the XRPZ25 contract launched on September 9 will expire on December 26, 2025. Meanwhile, XRPU25, which became live on June 10, will expire on September 26. Traders also tend to use such contracts for arbitrage or hedging.
In 2020, BitMEX first introduced XRP perpetual futures, followed by spot trading of XRP in March 2024. The platform also launched multi-asset margining, whereby users could use XRP as collateral to trade derivatives in January.
This year, BitMEX further expanded its offering with options contracts for XRP, enhancing the range of trading strategies available for the Ripple-linked token.
Also Read: XRP Double Bottom and Ascending Triangle Pattern Points to Massive Breakout – See Target
