RLUSD Sees 2000% Growth in Trading Volume

RLUSD, Ripple’s USD-pegged stablecoin, has scored a 2000% surge in trading volume as outlined on CoinMarketCap. Noteworthy, it’s been less than three weeks after the official launch of RLUSD. At the time of this writing, the trading volume metric was at $612.85 million, underscoring the receptive nature of crypto investors and traders towards the stablecoin.

RLUSD Becomes Fourth Most-traded Stablecoin 

With such figures, RLUSD is now the fourth most-traded stablecoin product. Similarly, the market cap of the token is $53.1 million. 

Though the trading volume speaks for itself, many netizens are doubting the accuracy of this data, judging by the short time between its launch and the release of this data. 

Over 96% of the entire 24-hour trading volume could be traced to the cryptocurrency trading platform Bullish. This past week, the exchange, backed by PayPal co-founder Peter Thiel, listed six pairs with this stablecoin.

What is Driving RLUSD Trading Volume Growth?

XRP Ledger (XRPL) validator Vet also weighed in on the matter, pointing out how excessively high the volume recorded by the RLUSD/USD pair on the Bullish exchange is. The fact that the pair has low liquidity suggests that the figure is the handiwork of only a few large players.

On the other hand, these staggering figures could also be influenced by Ripple products instead of ordinary users, according to Vet. “It’s the fact that it’s hard to distinguish between what’s driven by Ripple products and normal users,” the validator added. 

When it is eventually proven whether RLUSD’s trading volume figures are accurate, it is safe to say the stablecoin is doing well.

RLUSD Price Volatility in Pre-market 

A day before it was launched, Ripple’s Chief Technology Officer, David Schwartz, issued a cautionary note to investors. 

He attempted to address concerns about possible price volatility during RLUSD’s debut. Schwartz cited potential supply shortages as a factor that could temporarily push its price above the $1 peg. 

At the time, early pre-market bids already valued RLUSD as high as $1,244, marking a staggering 1,200% premium over its intended parity. In Schwartz’s opinion, enthusiasm results from buyers seeking prestige in acquiring the first RLUSD units. Still, he warned that these inflated valuations are unsustainable.