Ripple has gone ahead with one of the biggest RLUSD tokens burn since introducing the stablecoin. The crypto has already achieved various milestones and is growing in terms of user adoption. So, this step could mark a significant point towards increasing its demand. Here’s why.
Why Ripple Burnt 12 Million RLUSD Tokens?
According to the Ripple stablecoin tracker’s X post, the blockchain-based digital payment network has burned 12 million RLUSD stablecoin tokens on Tuesday. The on-chain stats confirm that at 11:05 UTC on April 22, the firm went ahead with sending the token to a burn wallet, which would remove their existence from the ecosystem forever.
Notably, such practices are made to reduce the excess supply of the token, creating scarcity, eventually boosting the demand. Another important point to note is that the transaction also focused on introducing cross-chain liquidity, as explained by the experts.
XRPL dUNL validator, Vet, reveals that the individual who requested the burning had moved the RLUSD from one blockchain to another. As a result, the supply of the tokens reduced on the XRP Ledger and increased on the Ethereum blockchain.
This acted as a liquidity bridge without affecting the circulation of the tokens. Interestingly, the RLUD Treasury minted 12 million (equal to the burning amount) within seconds after that.
Similar to most top stablecoins, RLUSD is also pegged to the dollar at a 1:1 ratio. Interestingly, its adoption has been constantly growing since various top exchanges listed the token. Recently, Ripple stablecoin got listed on the Aave V3 Ethereum Core Market, gaining additional investor attention.
Amid that and the RLUSD tokens burning, its trading volume is up by more than 200%, currently at $102.96 million. In addition, its market capitalization stands at $294.07M, with 294.04M RLUSD in circulation. Interestingly, under the impact of this and the recovery of the crypto market, the XRP price is soaring.
Notably, Ripple Labs’ integration of RLUSD stablecoin with the payment network highlights the digital asset among users. Experts anticipate that RLUSD will occupy 50% of the stablecoin market capitalization and many other milestones in the near future.
Frequently Asked Questions (FAQs)
The 200% surge in the trading volume reveals high investor activity after the token burn and listing on Aave V3 Ethereum Core Market.
The tokens were burnt on the XRP ledger and re-minted on the Ethereum, serving as a liquidity bridge.
Burning stablecoins results in wiping out that portion of tokens from the ecosystem, reducing their supply. As a result, their demand increases, and the price also increases.
Pooja Khardia
With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.
As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/trending/ripple-burns-12-million-rlusd-tokens-heres-why-it-matters/
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