Ripple's Stablecoin Mint Sparks High Burn Rate on XRP Ledger

Ripple's $449M stablecoin mint on XRP Ledger sparks burn activity. In just 30 days, Ripple minted $449.3 million of its RLUSD stablecoin on the XRP Ledger. However, a significant portion of these tokens were rapidly redeemed by institutional clients, resulting in a high burn rate.

The rapid redemptions kept the net supply growth near zero, highlighting a major liquidity imbalance compared to Ethereum. In contrast, $403 million was minted on Ethereum, but only $177.3 million was burned, allowing for net inflows of over $225 million.

The dual-chain usage model is reflected in the burn activity, with the XRP Ledger mainly used for fast token conversions and Ethereum holding tokens longer for DeFi purposes. The total circulating RLUSD supply stands at about $1.757 billion, split almost evenly between the two platforms.