The stablecoin Ripple USD (RLUSD) has made waves in the cryptocurrency market, surpassing $3.02 trillion in total trading activity just over a month after its debut on centralized exchanges. This impressive feat was highlighted in a recent CCData report, which revealed that RLUSD recorded $2.84 trillion in trading volume in January alone, making it the fourth-largest stablecoin by trading volume.
One of the key factors driving RLUSD’s trading activity is its strong backing, with a circulating supply of $97.5 million backed by reserve funds exceeding $104 million. The Bullish exchange has played a significant role in driving RLUSD’s trading volume, accounting for 85.7% of its total volume at $2.42 billion. Other exchanges like Bitstamp, Independent Reserve, Bitso, and Mercado Bitcoin have also listed RLUSD, expanding its market reach.
RLUSD officially launched on December 17, 2024, following approval from the New York State Department of Financial Services (NYDFS). Since its launch, RLUSD has gained traction in the market, attracting significant trading activity and solidifying its position among other leading stablecoins.
The broader stablecoin market has also experienced significant growth, with total market capitalization reaching a record $215 billion in January. This marks the sixteenth consecutive monthly increase in stablecoin market capitalization, with stablecoin dominance in the broader crypto market climbing to 6.31%.
Despite the strong start to the year, stablecoin trading volumes on centralized exchanges have seen a slight decline, with platforms recording $1.71 trillion in stablecoin trading activity as of January 26. This decline is attributed to waning momentum following key market catalysts, including the return of President Donald Trump to office.
Tether USD (USDT) saw its market share decline in January, falling to 82.4% among top stablecoins on centralized exchanges. In contrast, First Digital USD (FDUSD) and USD Coin (USDC) saw their trading dominance rise, reflecting shifting market preferences and intensifying competition in the stablecoin sector.
Solana has emerged as a major player in the stablecoin ecosystem, with the total supply of stablecoins on its network surging by 112% to a record $11.1 billion in January. This growth surpasses the previous all-time high set in 2022 and aligns with a wave of capital inflows to the network.
The spike in Solana’s stablecoin supply was driven by heightened decentralized exchange (DEX) trading activity following the launch of Donald Trump’s memecoin, Official Trump (TRUMP), on January 18. USDC continues to dominate Solana’s stablecoin ecosystem, accounting for 77.9% of the network’s supply, followed by USDT with a 17.8% market share. Additionally, First Digital Labs’ FDUSD debuted on Solana in January, expanding the network’s stablecoin assets to 30.
Overall, the stablecoin market is evolving rapidly, with new players like RLUSD and Solana making significant strides and reshaping the landscape of digital assets. As competition intensifies and market preferences shift, the stablecoin sector is poised for further growth and innovation in the months to come.