Ripple’s RLUSD Stablecoin Reaches $76M Supply on Aave in Four Days

• RLUSD supply on Aave V3 surpassed $76 million in only four days after the stablecoin’s addition to the Ethereum Core market. 
• Ripple’s RLUSD stablecoin market capitalization is nearing $300 million as user adoption continues to increase across decentralized platforms. 
• Ripple conducted a burn-to-mint transfer of 27 million RLUSD tokens to maintain its peg during cross-chain transactions between Ethereum and XRP Ledger.

Ripple’s stablecoin RLUSD has recorded $76 million in deposits within four days of its launch on the Aave V3 Ethereum Core market. Aave, one of the largest decentralized liquidity protocols, announced the listing of RLUSD on April 21, allowing users to supply and borrow the token.

Users can now earn interest by supplying RLUSD and can also borrow the stablecoin on Aave. However, Aave has restricted RLUSD from being used as collateral to minimize potential risks. The stablecoin’s borrow cap has been set at $10 million, a move intended to limit exposure to a newly listed asset.

RLUSD Utilization Remains Modest Despite Supply Surge

According to Aave’s latest data, RLUSD’s utilization rate stands at 14.86 percent. The capped borrowing limit is a major factor behind the relatively low usage. Despite the moderate utilization, the high volume of supply signals growing interest in the stablecoin among DeFi users.

RLUSD demonstrates an escalating overall market capitalization that is expected to reach $300 million according to CoinGecko’s latest statistics. Ripple introduced RLUSD in December with intentions for it to develop into one of the largest digital assets by the year 2025. The stablecoin operates only on the XRP Ledger and Ethereum networks at present.

Ripple Executes Burn-to-Mint Transfers Between Chains

On Thursday, Ripple carried out a burn-to-mint operation involving 27 million tokens. This process helps move RLUSD between the XRP Ledger and Ethereum while keeping the stablecoin’s value stable. Each transaction carries a slight network fee on the XRP Ledger and typically completes within 20 seconds.

Currently available on only two networks, RLUSD may expand to other blockchains like Cardano in the future. However, no official timeline for additional network deployments has been disclosed.

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