Ripple Burns 12 Million RLUSD Tokens – Here’s Why It Matters
Highlights
- Ripple has burned 12 million RLUSD tokens, the biggest burn since the stablecoin's launch.
- The RLUSD burn also acted as a cross-chain liquidity bridge.
- Following the RLUSD tokens' burn, the trading volume surged over 200%.
Ripple has gone ahead with one of the biggest RLUSD tokens burn since introducing the stablecoin. The crypto has already achieved various milestones and is growing in terms of user adoption. So, this step could mark a significant point towards increasing its demand. Here’s why.
Why Ripple Burnt 12 Million RLUSD Tokens?
According to the Ripple stablecoin tracker’s X post, the blockchain-based digital payment network has burned 12 million RLUSD stablecoin tokens on Tuesday. The on-chain stats confirm that at 11:05 UTC on April 22, the firm went ahead with sending the token to a burn wallet, which would remove their existence from the ecosystem forever.
Notably, such practices are made to reduce the excess supply of the token, creating scarcity, eventually boosting the demand. Another important point to note is that the transaction also focused on introducing cross-chain liquidity, as explained by the experts.
XRPL dUNL validator, Vet, reveals that the individual who requested the burning had moved the RLUSD from one blockchain to another. As a result, the supply of the tokens reduced on the XRP Ledger and increased on the Ethereum blockchain.
This acted as a liquidity bridge without affecting the circulation of the tokens. Interestingly, the RLUD Treasury minted 12 million (equal to the burning amount) within seconds after that.
RLUSD Trading Volume Rose 200% Past Tokens Burning
Similar to most top stablecoins, RLUSD is also pegged to the dollar at a 1:1 ratio. Interestingly, its adoption has been constantly growing since various top exchanges listed the token. Recently, Ripple stablecoin got listed on the Aave V3 Ethereum Core Market, gaining additional investor attention.
Amid that and the RLUSD tokens burning, its trading volume is up by more than 200%, currently at $102.96 million. In addition, its market capitalization stands at $294.07M, with 294.04M RLUSD in circulation. Interestingly, under the impact of this and the recovery of the crypto market, the XRP price is soaring.
Notably, Ripple Labs’ integration of RLUSD stablecoin with the payment network highlights the digital asset among users. Experts anticipate that RLUSD will occupy 50% of the stablecoin market capitalization and many other milestones in the near future.
Frequently Asked Questions (FAQs)
1. What does the RLUSD’s 200% trading volume surge mean?
2. How did this RLUSD burn act in a cross-chain transaction?
3. What is the purpose of burning stablecoins?
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