As the overall stablecoin market enters a phase of supply contraction, Ripple's dollar-pegged stablecoin 'Ripple USD (RLUSD),' circulating on the XRP Ledger (XRPL), is showing steep growth instead. Because it is moving in the opposite direction of the broader market trend, changes are being detected in the stablecoin ecosystem within the XRPL.

■ Stablecoin Supply Down 6% vs. RLUSD Up 39%

According to recently released data, total stablecoin supply has fallen about 6% since its peak in May. In contrast, over the same period, the amount of RLUSD circulating on the XRP Ledger increased about 39%, surpassing $900 million. Recent data shows the figure has expanded to around $938 million.

■ Notable Issuance and Redemption Turnover... Potential Use as a Payment and Settlement Instrument

More noteworthy than the simple supply increase is RLUSD's issuance and redemption turnover. Over the past 30 days, approximately $450 million worth of RLUSD was issued on the XRPL, with a comparable amount redeemed again. Earlier tallies also showed about $449.3 million issued and $448.9 million burned, meaning the net supply increase was limited.

This suggests that on the XRP Ledger, RLUSD may be being used as a payment and settlement instrument with rapid cycles of issuance and redemption, rather than as a long-held asset. However, issuance and burn volumes alone make it difficult to determine actual institutional payment demand or usage purposes.

■ RLUSD Market Cap Exceeds $2 Billion... Monthly Transfers of $11.8 Billion

RLUSD's own scale is also growing rapidly. As of the 27th, according to relevant tallies, total RLUSD market capitalization reached approximately $2.02 billion, of which about $963 million was circulating on the XRP Ledger. Monthly transfer volume was recorded at $11.81 billion, with about 1.39 million transactions.

RLUSD's growth can also be confirmed in official data released by Ripple. As of August 20, total circulating supply was stated at approximately $1.8665 billion, with reserve assets of about $1.9813 billion. RLUSD is backed 1:1 by cash and cash-equivalent assets and undergoes regular reserve attestations.

■ Does Not Directly Mean a Rise in XRP Price

It is also worth noting that the market view is that this trend does not directly imply a rise in the price of XRP itself. While expanded RLUSD usage could boost utilization of the XRPL's payment and settlement infrastructure, XRP's price is influenced by a variety of factors, including cryptocurrency market supply and demand, investor sentiment, and macroeconomic conditions.

Nevertheless, the fact that XRPL-based RLUSD is showing relatively fast expansion at a time when overall stablecoin supply is declining could serve as one indicator for judging the extent to which the XRP Ledger is being used as a network for processing stablecoin and institutional fund movements.

[※ This article was written for the purpose of providing information on the cryptocurrency market and does not recommend the purchase or sale of any specific virtual asset or guarantee investment returns. Cryptocurrencies are high-risk assets with extreme price volatility, and significant losses may occur depending on market conditions, regulatory changes, and liquidity. Investment decisions and the resulting responsibility lie with the investor. This article was written with AI assistance.]