in $XRP Recently, there has been a growing belief in the community that the token has finally been left on the sidelines of the market. The logic behind this observation is simple. As Ripple shifted its focus to a new dollar stablecoin, $RLUSD“old volatile” $XRP It is no longer needed and liquidity simply flows into stable assets.
Analyst at Evernorth, the largest independent company $XRP The Treasury Department examined the logic behind this fear and used the latest on-chain data from Dune Analytics to explain why the new dollar is “not eating.” $XRPbut instead acts as its main catalyst.
internal $RLUSD and $XRP synergistic effect
When Ripple first launched its digital dollar, investors expected the worst — if big companies were given a stable dollar for domestic payments. $XRP Ledger (XRPL), $XRP That would write off itself. But in reality, everything went in the opposite direction.
According to the latest report, 52% of the total $RLUSD While the majority of stablecoins were held on Ethereum, with only 17% share of the network as of April, there is now an increasing amount of circulation within XRPL.
In less than a year and a half, $RLUSD‘s share of trading operations within XRPL has increased from near-zero levels of less than 1% to 12%. Here, Evanorth experts make an important point: The market is not abandoning. $XRP — Traders just started actively moving dollars through tokens.
To understand the essence of this process, analysts suggest looking at the traditional foreign exchange market. In the global economy, the US dollar participates in most transactions and serves as the main connecting link. Without this, it would be difficult to quickly and cheaply exchange Yen for Tughrik, for example.
A similar model is currently being built on Ripple’s blockchain.
direct $RLUSD/$XRP The trading pair generated $900 million in trading volume in just six months, creating a thick dollar market that did not previously exist. Judging by the indicators, these assets do not compete within this pair, but share responsibility.
- $RLUSD There are no exchange rate fluctuations, giving businesses a clear dollar value of their payments.
- $XRP It acts as an independent “bridge” for instant conversion between other assets when the interests of the parties at each end of the transaction are not directly aligned.
However, the main technical argument as to why is that $XRP A key aspect of Ripple’s expansion into stablecoins is the way the network itself is built. Any operations, transfers, or orders. $RLUSD/$XRP The pair requires a network fee, and that fee is physically and permanently baked into it.
This creates a simple relationship. The more popular digital dollar payments become, the more activity there will be around the world. $XRP pair. And the more activities there are, the more $XRP Tokens are burned, reducing the network’s total supply of native assets.
As a result, the dollar will not rise $XRP Off the market. Built on top of that, Evernorth concludes, it generates liquidity and allows native tokens to burn even faster.
