Ripple has made a significant move in the crypto world by burning nearly all of its Ripple USD (RLUSD) tokens. In just one day, 46.67 million RLUSD tokens were permanently removed from circulation. This bold action has sparked curiosity about the future of RLUSD and its potential impact on Ripple’s blockchain.
According to reports from the Ripple Stablecoin Tracker, the recent burn of 46.47 million RLUSD tokens could be a sign that Ripple is preparing to officially announce the launch of its long-awaited stablecoin.
By removing a large portion of the token supply, Ripple is potentially increasing scarcity, which could drive up the value of the remaining RLUSD tokens as demand grows.
Could Scarcity Drive Up Value?
With just 100,000 RLUSD tokens left on each blockchain, Ripple’s decision to reduce supply could make the token more scarce. As demand rises, this scarcity could lead to an increase in the value of the remaining RLUSD tokens.
Approval from NYSDFS
However, there’s still a significant challenge for Ripple to overcome: securing approval from the New York State Department of Financial Services (NYSDFS). This approval is essential for Ripple to move forward with its stablecoin plans and bring them to market.
Ripple Labs has taken an important step toward launching its RLUSD stablecoin by minting 10.5 million tokens on the mainnet as reported by Coinpedia News. This is part of a series of tests to make sure the stablecoin can handle real-world use before it officially launches.
Ripple’s entry into the stablecoin market dates back to April when the company expressed its interest in launching a dollar-pegged cryptocurrency. This move comes as the stablecoin market continues to grow rapidly, with market leaders such as Tether (USDT) and USDC reaching massive market caps of $130 billion and $40 billion, respectively.
Ripple has hinted that it may expand its stablecoin to additional blockchain networks in the future. This would help increase adoption and open up new use cases for the token, further strengthening Ripple’s presence in the stablecoin market.
Ripple President Monica Long has stated that the stablecoin will have customers lined up when it is launched. Although Ripple initially hoped for a 2024 release, the exact launch date is still unclear.
As Ripple moves forward with its plans, all eyes are on the company’s next steps. The launch of RLUSD could have a significant impact on the stablecoin market, and many are eager to see how Ripple’s entry will shake up the industry.
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