Ripple Stablecoin Testing Advances with Giant RLUSD Minting and Burning

The Ripple stablecoin has continued to gain major traction in the testing phase with new burning trend.

Key Notes

Ripple has advanced its RLUSD Beta testing.The company is now conducting heavy burning of RLUSD onchain.The firm only has plans to launch RLUSD on Ethereum this year, with XRPL to come next year.

The launch of RLUSD, Ripple Labs’ USD-backed stablecoin, could come in a few weeks, judging by the volume of mints the firm is conducting. So far, Ripple has minted 42 million units of the stablecoin at the RLUSD Treasury. According to the dedicated Ripple Stablecoin Tracker, Ripple saw the most recent mint of 504 RLUSD on October 6. Since that time, Ripple has completed a series of RLUSD burns on the chain.

On October 6, the San Francisco-based blockchain firm also incinerated 115 RLUSD. Within the last 24 hours, 240 RLUSD went up in flames in two tranches of 120 tokens each. Two batches of 115 tokens followed the same process earlier.

Ripple Mints RLUSD in Millions

Ripple began minting this stablecoin on the XRP Ledger and Ethereum mainnet with small bits and gradually moved on to larger chunks.

From minting around 50,000, 100,000, and 480,000 RLUSD units, the firm jumped to minting millions. Ripple recorded its largest single mint of 10 million RLUSD on October 4. After a series of RLUSD minting, Ripple has now switched to burning the USD-pegged stablecoin.

Since October 4 till this writing, the platform has recorded 1100 RLUSD burns or transfers to inactive wallets. Both minting and burning processes are part of the private beta testing phase of the stablecoin. Ripple advised community members to remain vigilant, watching against scammers who may want to defraud them in the guise of RLUSD and Ripple.

RLUSD is still not available for purchasing or trading. Ripple CTO David Schwartz revealed that RLUSD will initially be available only to institutional investors.

As the community anticipates the full debut of the stablecoin, they have received shocking information from the blockchain company. Ripple notified its users that RLUSD will only go on the Ethereum mainnet this year, disappointing those who also looked forward to its launch on XRPL.

Should the team push for the 2024 release of RLUSD on XRPL, it may fall short regarding key features and functionalities. This includes Automated Market Maker (AMM), which would have restrictions on the DEX orderbook instead of XRPL.

RLUSD and SHI to Compete with USDC and USDT

As the launch of RLUSD draws closer, so does the reality of its possible competition with USDT and USDC USDC $1.00 24h volatility: 0.0% Market cap: $35.27 B Vol. 24h: $7.50 B .

Currently, USDT holds the larger share of the stablecoin market, followed at a safe distance by USDC. RLUSD’s entry into the ecosystem may trigger a change in market share and dominance between these existing giants. Ripple’s history of fueling cross-border settlements through XRP may serve as an advantage for RLUSD to thrive.

The competition is likely to get steeper, with Shiba Inu also considering launching its stablecoin. SHIB SHIB $0.0000 24h volatility: 2.5% Market cap: $10.34 B Vol. 24h: $697.85 M marketing lead LUCIE revealed the network’s plans to launch a stablecoin dubbed SHI in September. For now, the SHI stablecoin is in its development stage and not even ready for beta testing.

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