Ripple’s stablecoin (RLUSD) is now being used primarily on the Ethereum blockchain rather than XRP, as it became known in a report from XRP contributor “Vet_X0.” Currently, $61,823,274 worth of RLUSD is being distributed on Ethereum, which is well ahead of the $21,995,883 held on the XRP Ledger.
This 1:3 ratio shows Ethereum’s growing role in the stablecoin infrastructure, which may disappoint many XRP enthusiasts who saw Ripple USD primarily as another way to expand the XRPL ecosystem.
This big difference is mainly due to the fact that Ethereum has an established ecosystem, and ERC-20 tokens are used all over the crypto space. Many exchanges, especially large ones, can already easily integrate Ethereum-based assets, so RLUSD on Ethereum benefits from an infrastructure that supports sending, receiving and listing tokens.
This makes it very convenient and probably explains why Ethereum currently dominates RLUSD allocation, even though the XRP Ledger remains an integral part of Ripple’s operations.
RLUSD distribution
$61,823,274 on ETH
$21,995,883 on XRP Ledger
~1:3 ratio – will be interesting to see over time how demand on each chain evolves.
— Vet (@Vet_X0) January 9, 2025
Some people think this is due to a staggered rollout strategy. Even though they have the infrastructure to support RLUSD, some platforms like Bitstamp, which is partly owned by Ripple, seem to be taking a more cautious approach, probably just waiting to see how the stablecoin is accepted and what the regulatory landscape looks like.
Meanwhile, RLUSD is gaining momentum in terms of transaction volume. CryptoQuant’s data shows a steady increase in RLUSD activity, with predictions of even faster growth. The stablecoin’s compliance with the European Union’s MiCA regulations puts it in a good position in a European market that is far more stringent than the U.S.
However, the goal for Ripple USD remains to get the biggest slice of what could be a $2.8 trillion market in the future.
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