Ripple Burns Nearly 180 Million RLUSD in Mere Hours
Analysis
Price Impact
MedThe burning of tokens, while a standard operational mechanism for stablecoins, has led to a significant decrease in rlusd's market cap, causing it to slip in stablecoin rankings. this indicates a potential loss of investor confidence or reduced demand, but the underlying value proposition of a regulated stablecoin remains.
Trustworthiness
MedPrice Direction
NeutralWhile the market cap has decreased, the event is primarily a reflection of liquidity movements and redemptions rather than a direct price crash of the stablecoin itself, which is pegged to the usd. the price should remain stable around $1, but the reduced circulating supply and ranking shift might create some short-term volatility or reduced trading interest.
Time Effect
ShortThe immediate impact of the large burn event has been observed in the market cap reduction and ranking change. while the stablecoin's price is expected to remain pegged to the usd, further significant redemptions or inflows could cause short-term fluctuations. long-term, its position will depend on broader market adoption and competition.
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Cover image via depositphotos.com A $340 million market cap drop Slipping in stablecoin rankings Advertisement Ripple's highly regulated RLUSD stablecoin has experienced a significant market cap reduction. Earlier today, the company burned more than 180 million tokens in mere hours, which is the single biggest one-day supply contraction in the history of the red-hot stablecoin that has become the darling of traditional finance players. A $340 million market cap drop According to a recent Deloitte audit, RLUSD had a circulating supply of roughly $1.56 billion in late February. HOT Stories Ripple Burns Nearly 180 Million RLUSD in Mere Hours Elon Musk Names Surprising Advantage of Quantum Crypto Hacks However, CoinGecko data shows that the token's market capitalization has nose-dived over the last few weeks. The current circulating supply of the token is sitting at 1.28 billion tokekns. Advertisement RLUSD's market cap has now been reduced by $340 million since the late February peak. You Might Also Like Mon, 03/30/2026 - 05:45 Ripple CEO Recalls Buffett's Legendary Crypto Dig By Alex Dovbnya A "burn" is not necessarily a negative event since it is a standard operational mechanism. For instance, Ripple used to burn RLUSD tokens on the Ethereum blockchain to issue them on the XRP Ledger. Advertisement In this case, the Gemini exchange executed massive redemptions at the end of Q1. They have cashed out hundreds of millions of dollars worth of liquidity that they used for minting RLUSD with Ripple. Just now Gemini redeemed (via burning) 128,000,000 $RLUSD on the XRP Ledger with Ripple. This means they requested the liquidity back that they used to mint RLUSD with Ripple, by burning RLUSD. pic.twitter.com/NEaqSHAaH0 — Vet (@Vet_X0) March 31, 2026 Slipping in stablecoin rankings Due to the recent burn event, Ripple's RLUSD has now slipped in stablecoin rankings below Binance's BFUSD. Ripple's RLUSD is still miles away from catching up with PayPal's PYUSD, another highly regulated stablecoin player. The latter has a market cap of more than $3.9 billion. Tether (USDT), of course, remains unchallenged with a market cap of $184 billion. The stablecoin giant recently announced that it had hired a "Big Four" auditor. #Ripple News #RLUSD