Ripple Labs has recently started minting RLUSD stablecoins again, producing 90 new tokens in a week from when it temporarily ceased creation. This move alone helped push the price of XRP, Ripple’s native cryptocurrency, up by 6%. The positive market response is an indication that investors are increasingly optimistic about Ripple’s approach to broadening its digital asset portfolio.
Ripple Expands Stablecoin Supply Without Token Burns
Ripple created an extra 90 RLUSD stablecoins without the usual process of destroying some of the tokens to control the supply. Prior sessions recorded token burns as a tool to regulate the supply of tokens in circulation.
This change indicates that Ripple is now testing a higher stablecoin supply to understand its implications in the market.
According to Etherscan data, the new RLUSD tokens were minted on Ethereum. It shows that Ripple is working to ensure liquidity. This minting comes after a short pause in the output. It shows that Ripple is keen on stabilizing the market and expanding the stablecoin offering.
The decision to cease burning and to issue more tokens is in line with the business strategy. The strategy is to improve the liquidity of the tokens in the market.
Regulatory Compliance and Upcoming Audits
Ripple’s approach to minting RLUSD is focused on regulatory compliance and market stability. The company has emphasized testing phases to ensure the stablecoin adheres to necessary standards. By avoiding burns, Ripple is studying the market’s response to a larger supply. This could shape its future strategies for token management.
A third-party audit is scheduled to take place to verify the assets supporting the reserves of RLUSD. This step will increase the level of transparency and will prove Ripple’s dedication to having a stablecoin with strong backing. The use of transparent reserves will help to attract institutional investors. It can make RLUSD a reliable asset in the crypto market.
Ripple’s emphasis on compliance minimizes its risk of facing legal problems and boosts the credibility of the company among investors. Thus, the audit will give valuable information to the company and the market players. It could help to build a more reliable stablecoin market.
XRP’s Role in the Expanding Ripple Ecosystem
Analysts believe that the launch of RLUSD can be bullishly significant for XRP, especially since it is linked to the Ethereum network. Therefore, XRP has a major function as a transaction facilitator on the XRP Ledger, which is essential for cross-platform transactions. As RLUSD adoption increases, the number of transactions on the XRP Ledger may rise, thereby increasing the demand for XRP.
XRP price has been on an upward trend recently. It rose by 6% to trade at around $0.56, with trading volume increasing by almost 73%. This surge indicates increased concern in XRP as Ripple goes on increasing its asset portfolio. However, the market analysts are still conservative and expect that XRP may encounter a strong resistance at $0.62 soon.
Further fueling the rally, Grayscale Investment has recently introduced a trust that provides accredited investors with direct access to XRP. This comes amid heightened interest from investors. They are currently exploring options beyond Bitcoin and Ethereum in the digital asset market with tangible use cases.
