Ripple's stablecoin (#RLUSD ) has seen a sharp decline in volume of over 57% as user demand has significantly decreased. Over the past 24 hours, trading volume has dropped dramatically by 60.14% to reach $44.63 million.
Declining demand for RLUSD amid a halt in issuance activity
This development has sparked a discussion about how it affects $XRP
The native token of the ecosystem. It is noteworthy that the decline in demand for the stablecoin suggests that users who were previously flocking to RLUSD as an alternative to USDT from Tether and USDC from Circle may be retreating.
This may indicate limited liquidity on the XRP Ledger (XRPL) based on decentralized exchanges and decentralized applications. The decline in demand may be responsible for the lack of stablecoin activity from Ripple over the past three weeks.
According to a U.T.o.day report, Ripple Labs, the blockchain payments giant, has not issued RLUSD for more than 41 days. The recent decline in volume confirms the analysis that Ripple may have halted the process to maintain supply.
Despite being the coin associated with Ripple, XRP operates on its positive fundamentals and remains independent of RLUSD. Although it is used for cross-border payments, it is unlikely to suffer any significant impact from the decline in RLUSD volume.
XRP disconnects despite uncertainty regarding RLUSD
At the time of publication, XRP was trading at $2.18, representing a decline of 0.28% in the past 24 hours. The asset is on a recovery journey, having risen from $2.08 to its current level. Investors in the ecosystem support XRP's journey as trading volume has risen significantly by 75.12% to reach $3.51 billion.
This indicates that although RLUSD has suffered a collapse in volume, XRP has disconnected from it and shows a bullish signal.
It is also possible that the current decline in RLUSD volume is temporary as the broader market indicates a shift in trend for the stablecoin. Ripple recently received regulatory approval in Dubai, a development that could support improved ecosystem performance in the coming days.
🇾🇪🇾🇪🇾🇪🇾🇪🇾🇪
