The stablecoin Ripple USD (RLUSD) has quickly made a significant impact in the crypto market, surpassing $3.02 trillion in total trading activity within just over a month of its launch on centralized exchanges, as reported by CCData.
During the month of January alone, RLUSD saw an impressive $2.84 trillion in trading volume by January 23, positioning itself as the fourth-largest stablecoin by trading volume. The peak trading day was recorded on January 4, reaching $400 million in activity.
The report indicates that as of January 23, RLUSD had a circulating supply of $97.5 million, backed by reserve funds exceeding $104 million. The majority of RLUSD trading activity has been driven by the Bullish exchange, accounting for 85.7% of its volume, totaling $2.42 billion.
Bitstamp follows as the second most active exchange, processing $398 million in RLUSD trades. Other exchanges like Independent Reserve, Bitso, and Mercado Bitcoin have also listed RLUSD, expanding its market presence.
RLUSD was officially launched on December 17, 2024, a week after Ripple received approval from the New York State Department of Financial Services (NYDFS).
Stablecoins on the rise
The stablecoin market experienced significant growth in January, with total market capitalization reaching a record $215 billion, a 5.68% increase. This marks the sixteenth consecutive monthly increase in stablecoin market capitalization.
Stablecoin dominance within the broader crypto market also saw an uptick to 6.31%, the highest since October. This surge in dominance coincided with a period of market consolidation post-President Donald Trump’s inauguration.
Despite a strong start to the year, stablecoin trading volumes on centralized exchanges appear to be tapering off. As of January 26, these platforms recorded $1.71 trillion in stablecoin trading activity, suggesting a possible shortfall compared to December’s $2.66 trillion.
The report attributes this decline in trading activity to diminishing momentum post-key market events, including Trump’s return to office.
Tether USD (USDT) witnessed a decline in market share in January, dropping to 82.4% among top stablecoins on centralized exchanges. On the other hand, First Digital USD (FDUSD) and USD Coin (USDC) saw their trading dominance rise to 8.77% and 8.50%, respectively.
Market preferences are shifting as competition in the stablecoin sector intensifies, reflected in the changing stablecoin dominance.
Solana’s stablecoin surge
Solana emerged as a significant player in the stablecoin ecosystem in January, with the total supply of stablecoins on its network soaring by 112% to a record $11.1 billion. This growth surpasses the previous peak set in 2022, driven by a wave of capital inflows to the network.
The spike in Solana’s stablecoin supply was propelled by heightened decentralized exchange (DEX) trading activity following the launch of Donald Trump’s memecoin, Official Trump (TRUMP), on January 18.
Since the introduction of the memecoin, Solana’s stablecoin supply surged by 73.6%, surpassing Binance Chain to become the third-largest blockchain for stablecoin supply, trailing only Ethereum and Tron.
USDC remains dominant in Solana’s stablecoin ecosystem, representing 77.9% of the network’s supply, followed by USDT with a 17.8% market share.
First Digital Labs’ FDUSD made its debut on Solana in January, expanding the network’s stablecoin assets to 30.
