Is Ripple USD's Declining Volume a Threat to XRP's Dominance? Explore the Potential Impact

Ripple Stablecoin Faces Volume Plunge as User Demand Declines

The Ripple stablecoin, RLUSD, has seen a sharp decline in trading volume, dropping over 57% as user demand weakens. According to CoinMarketCap, RLUSD's 24-hour trading volume fell 60.14% to $44.63 million.

This downturn has raised questions about potential ripple effects on XRP, the ecosystem's native token. The dwindling interest in RLUSD indicates users may be moving away from it as an alternative to established stablecoins like USDT and USDC. The lack of RLUSD activity over the past three weeks could stem from Ripple's decision to pause minting to control supply.

While RLUSD struggles, XRP continues to operate independently based on its own fundamentals. Despite a minor 0.28% dip to $2.18, XRP shows resilience with a 75.12% surge in trading volume to $3.51 billion. The token has rebounded from $2.08, signaling strong market interest.

This decoupling suggests RLUSD's volume collapse may be temporary. With Ripple recently securing regulatory approval in Dubai, the ecosystem could see improved performance, potentially reviving RLUSD's trading activity in the near future.