Amid the launch of Ripple’s new RLUSD product, the stablecoin market has discovered a new challenger to Circle and Tether’s continued dominance. In fact, according to a report from CryptoQuant, stablecoin liquidity has reached a new record of $169 billion. That number should be even higher for newcomers looking to build on the Big Three.
There is no denying the dominance of both USDT and USDC in the stablecoin market. However, the potential of Ripple’s RLUSD token cannot be underestimated. The company’s importance in cross-border payments has seen it emerge as a strong challenger to the sector’s two biggest assets.
Source – PYMNTS
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USDT, USDC, RLUSD? A new challenger may emerge in the stablecoin market
STablecoins have been an important part of cryptocurrencies ever since they first appeared. They are often perceived to be much more secure than traditional cryptocurrencies, which are pegged directly to a specific fiat currency. Additionally, they have shown massive adoption. They remain the 18th largest financial holder, Bernstein said.
Its importance may only increase in the future. In fact, Ripple is preparing to enter the stablecoin market and challenge both Circle and Tether. However, a bid for market share by RLUSD is set to take place after stablecoin liquidity hit record numbers in September of this year. This increase is likely to have a positive impact on the overall market.
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“Cryptocurrency market liquidity, measured by stablecoin value, reached a record in late September,” CryptoQuant analysis said. “The market capitalization of major USD-denominated stablecoins is currently $169 billion, an increase of 31% or $40 billion since the beginning of the year. Increases in stablecoin market capitalization are typically driven by increased market liquidity. It is correlated with the rise in the price of Bitcoin and cryptocurrencies.”
Interestingly, its market cap should continue to rise. Despite regulatory challenges emerging in the EU, Ripple is poised to shake up the market. Tether has long dominated the market, accounting for 75% of the total.
However, RLUSD has already increased to a market cap of $47 million. XRPL is well observed and respected, which should pave the way for it to become the third largest stablecoin offering in the entire industry. Therefore, it is a net positive for cryptocurrencies as a whole.
