Ripple USD (RLUSD) Stablecoin experienced a sudden, brutal liquidation, causing concern among investors. According to CoinMarketCap data, within the last 24 hours, RLUSD has dropped 31% in trading volume.
Why is RLUSD bleeding?
Currently, RLUSD's trading volume is fixed at $96.8 million, but its market capitalization remains at $316.9 million. In particular, RLUSD saw more than $140 million in trading the previous day, highlighting a decline in investors' profits on assets.
RLUSD's Stablecoin also saw a 0.03% decrease in market capitalization. The drop suggests that users are not actively trading assets as they are still in the early adoption phase. The decline in RLUSD's market capitalization puts assets behind major Stablecoins such as Tether (USDT) and Circle's USDC.
Low interest in RLUSD could be due to the recovery of the latest XRP prices. XRP investors who had previously shifted their investments in RLUSD are probably rethinking their moves, leading to RLUSD plunging in trading volumes.
Within the last 24 hours, XRP prices have risen 2.5%. The XRP trades at $2.58 at press time and has a market capitalization of $151 billion. However, similar to RLUSD, trading volume exceeds 36% to $5.6 billion.
RLUSD is still recognized
The latest slump in RLUSD trading volume is a surprise. During the first emergence, Stablecoin saw a massive surge in trading volume. Earlier this month, U.Today reported that RLUSD trading volume had skyrocketed over 37% in just 24 hours. Market analysts believe this surge is attributed to Stablecoin's global positioning.
Gemini, the leading US crypto exchange, listed RLUSD, offering increased liquidity and wider market exposure to Stubbrecoin. RLUSD has gained considerable traction following multiple use cases in the crypto and Tradfi trading market.
In particular, Ripple recently donated $25 million worth of RLUSD to two large education nonprofit organizations, Donorschoose and Teach for America.
