Amid the arrival of Ripple’s new RLUSD offering, the stablecoin market has found a new challenger to the ongoing dominance of Circle and Tether. Indeed, a report from CryptoQuant shows that stablecoin liquidity has reached a new record of $169 billion. That should only increase with the newcomer looking to create a big three.
There is no denying the dominance of both USDT and USDC within the stablecoin market. However, it is impossible to understate the potential of Ripple’s RLUSD token. Their importance in cross-border payments has seen them clearly emerge as a likely challenger to the two biggest assets in the space.
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USDT, USDC, and RLUSD? Stablecoin Market May Have a New Challenger
STablecoins have remained an important part of crypto since they first arrived. Often perceived as much safer than traditional cryptocurrencies, they are pegged directly to a specified fiat currency. Moreover, they have shown massive adoption. According to Bernstein, they remain the 18th largest treasury holder.
That importance may be set to only increase. Indeed, Ripple is entering the stablecoin market and preparing to challenge both Circle and Tether. Yet, the RLUSD bid for market share is coming as stablecoin liquidity reached a record figure in September of this year. That increase is likely to have a positive effect on the market as a whole.
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“Crypto market liquidity, measured by stablecoin value, hit a record in late September,” CryptoQuant analysis said. “The total market cap of major USD-backed stablecoins is now $169 billion, up 31% or $40 billion year-to-date. Increased stablecoin market cap typically correlates with higher Bitcoin and crypto prices by boosting market liquidity.”
Interstingly, that market cap should only continue to rise. Although regulatory challenges in the EU have emerged, Ripple is poised to shake up the market. Tether has long dominated the market, taking up 75% of its entirety.
Yet, RLUSD has already increased to a $47 million market cap. With the XRPL being well observed and respected, it should have a pathway to becoming the third-largest stablecoin offering in the entire industry. Therefore, being a net positive to crypto as a whole.