According to data from CoinMarketCap, Ripple USD (RLUSD) — the stablecoin developed by San Francisco crypto company Ripple — has lost over 50% of its trading volume in the last 24 hours.
The logical question is, what’s going on? There is an interesting perspective on the answer.
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As things stand, the Ripple stablecoin’s market capitalization remains at $294 million, while its current trading volume is $35.8 million — and that is after a 56% drop from the previous day.
Before that, it was at $101.43 million, which is about a third of the stablecoin’s total market cap, a significant amount. When the market cap to volume ratio is around 30%, that is a lot. What’s more, even now this ratio remains at 12.7%, which is also a sign of increased activity with the asset.
In this light, the over 50% decline in the stablecoin is more of a decline from the peak of activity, rather than an overall abandonment of the asset.
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Interestingly, analyzing the historical volume data of RLUSD reveals that the stablecoin is indeed capable of such volume spikes. For example, just three days ago, the daily volume was $49.7 million, and three days before that it was just $13 million.
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Ripple USD got a significant boost after major U.S. cryptocurrency exchange Kraken announced its listing last week. With only it and Bitstamp among the top centralized platforms offering RLUSD trading, the stablecoin still has a massive listing trigger on its way to further boost both market cap and volume.
Not to mention that $100 million in daily volume is already a lot.
Source: https://u.today/ripples-rlusd-crashes-54-after-surge-in-volume-whats-behind-drop