Ripple’s RLUSD stablecoin has experienced a sudden market retreat, losing $44 million in trading volume within just 24 hours. This sharp drop comes as XRP stages a notable recovery, prompting investors to shift focus back to Ripple’s flagship asset.
According to CoinMarketCap, RLUSD’s trading volume fell from $140 million to $96.8 million, marking a steep 31 percent decline. Although the figure shows the withdrawal, the stablecoin’s market cap is still relatively stable at $316.9 million, indicating a minimal loss of 0.03 percent.
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The change in investor behavior is strongly related to the recent XRP price reversal. On the other hand the price of XRP also increased by 2.5 percent in 24 hours and reached a value of $2.58. Together with its market capitalization, which now stands at $151 billion, XRP’s market position is well-established in Ripple’s ecosystem.
When XRP’s price picked up, its trading volume also went down, slipping more than 36 percent to $5.6 billion. The reduction in both asset volumes indicates the overall cooldown in trading activity. However, RLUSD’s drop differs from the rest of the stocks because of its sharper percentage loss and previous rise this month.
Investors Shift Away from RLUSD as Confidence in XRP Rebuilds
Market analysts believe that many investors who had allocated funds to RLUSD during XRP’s weaker trading periods are now reversing course. As confidence in XRP grows, stablecoin alternatives like RLUSD temporarily lose appeal.
RLUSD gained traction following its listing on Gemini, a major U.S.-based crypto exchange. That listing significantly increased liquidity and contributed to RLUSD’s visibility in the world markets.
Besides, Ripple’s donation of 25 million dollars worth of RLUSD to DonorsChoose and Teach For America shed light on the stablecoin’s increasing applications. But those measures have failed to forestall the present-day dip in trading activity.
RLUSD is still an early adopter and trails behind established stablecoins such as Tether and USDC. Its latest fall can indicate the hesitation of traders who will wait for more utility or stability before starting long-term commitments.
The $44 million trading volume wipe-out of RLUSD occurs after XRP’s price recovers and investors’ sentiment changes. As traders return to XRP, RLUSD faces growing pressure to remain a relevant stablecoin in a brutally competitive stablecoin market.
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