76 Million RLUSD Tokens Supplied in Just Days on Aave
Analysis
Price Impact
MedThe rapid increase in rlusd supply on aave indicates growing adoption and utility. however, capped borrowing limits and the burn-to-mint mechanism suggest controlled growth and risk management.
Trustworthiness
MedThe information is sourced from aave data and coingecko, which are reputable sources. however, the newness of rlusd introduces uncertainty.
Price Direction
BullishIncreased supply on aave, approaching $300 million market cap, and potential expansion to other networks like cardano indicate positive price movement.
Time Effect
ShortInitial surge and market response are immediate, while long-term effects depend on sustained adoption and network expansion.
Original Article:
Article Content:
Cover image via www.freepik.com Read U.TODAY on Google News Ripple USD (RLUSD) has experienced impressive growth on Aave, the leading liquidity protocol. Advertisement Users have deposited a total of $76 million worth of RLUSD within just four days. On April 21, Aave announced that its users could start supplying and borrowing the stablecoin on the Aave V3 Ethereum Core market, the latest version of the protocol. HOT Stories 76 Million RLUSD Tokens Supplied in Just Days on Aave New Satoshi Nakamoto Statue Hits Japan Just as Bitcoin Price Reaches $95,000 Swiss National Bank Head Rejects Bitcoin Strategy and Saylor Follower Announces New Bitcoin Purchase This essentially means that users can earn interest by supplying RLUSD and borrowing the token. It is worth noting that Aave does not allow using the stablecoin as collateral. Advertisement Related Fri, 04/25/2025 - 13:24 Solana Outranks Ethereum in Key DeFi Profitability Metric Godfrey Benjamin According to the data provided by Aave, the borrow cap for the popular stablecoin is currently capped at $10 million. This is meant to prevent risk with a new asset. The borrow cap likely explains why RLUSD's utilization rate is relatively low (it currently stands at 14.86%). RLUSD's market cap is approaching $300 million Meanwhile, RLUSD's total market capitalization is now approaching the $300 million mark, according to CoinGecko. The company expects that RLUSD, which was launched in December, could end up among the biggest tokens by the end of 2025. On Thursday, Ripple burned and minted 27 million tokens, data provided by a popular social media tracker shows . This is known as a "burn-to-mint" process. In such a way, Ripple moves tokens between the XRP Ledger and Ethereum while ensuring that the stablecoin maintains its peg. The cross-chain transfer happens with a delay of about 20 seconds. Of course, such a "burn" is not deflationary, given that just a tiny XRP network fee gets spent during such a transaction. The stablecoin is currently available only on two chains, but it could potentially appear on other networks such as Cardano. #RLUSD #DeFi News