Ripple Carries Out Massive RLUSD Burns, What’s Going On?

Ripple has carried out a series of large RLUSD burns in recent weeks to remove millions of the stablecoin from ￰0￱ to data from the RLUSD burn tracker @RL_Tracker, more than 2.7 million RLUSD were recently destroyed in a single transaction, the biggest burn in many ￰1￱ Burns Massive Amounts Of RLUSD Crypto burns are not new to the crypto industry, especially when it comes to stablecoins. Interestingly, data from the RLUSD burn tracker, @RL_Tracker, has revealed an uptick in the amount of RLUSD burned in the past two weeks, which is worth ￰2￱ Reading: What Does AMM Liquidity Pools Mean For XRP And RLUSD Holders? Ripple Exec Answers Particularly, the latest data from @RL_Tracker, which was revealed in a post on the social media platform X, shows that 2,714,248 RLUSD were recently burned at RLUSD ￰3￱ records from on-chain analytics platform Etherscan confirm that these tokens were transferred into a null address from which they cannot be recovered or used, effectively reducing the outstanding supply for ￰4￱ was not an isolated ￰5￱ has been carrying out a string of large burns in recent weeks, with notable examples including two transactions of 1,000,000 RLUSD each on September 3 and another 1,000,000 RLUSD burn on August 29.

Together, these actions have brought the total burned supply to about six million RLUSD tokens in a very short span However, these reductions have been characterized by issuances of millions of tokens in the past few ￰6￱ recently, @RL_Tracker reported that 312,000 RLUSD were minted by the RLUSD Treasury in the past 24 hours. What’s Going On With RLUSD Burns? This back-and-forth between burning and minting is part of Ripple’s supply management cycle of RLUSD, where tokens are constantly adjusted in response to market demand and ￰7￱ Reading: Is Ripple Dumping XRP? Pundit Calls Out Founders, Threatens To Take Action RLUSD is pegged 1:1 to the US dollar and operates on both the XRP Ledger and ￰8￱ other asset-backed stablecoins, it is fully collateralized by fiat reserves and subject to monthly ￰9￱ demand for RLUSD rises, Ripple issues new tokens into ￰10￱ the other hand, excess supply is no longer needed when tokens are redeemed for dollars, and Ripple burns the surplus by sending it to an inaccessible ￰11￱ mints and burns are not unique to Ripple.

Tether, the largest stablecoin issuer, regularly conducts large-scale mints and burns of USDT to adjust ￰12￱ key difference from normal cryptocurrency burns, such as those seen with Shiba Inu, is that stablecoin burns are not carried out to create scarcity, which contributes to price ￰13￱ present, RLUSD’s total supply is around 728.7 million tokens and all minted tokens are actively being ￰14￱ stablecoin has a market cap of about $728 million and has seen its trading volume climb above $87 million in the past 24 ￰15￱ also continues to hold its $1 peg ￰16￱ image from iStock, chart from ￰17￱