Ripples RLUSD Crashes 54% After Surge in Volume: Whats Behind Drop?

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Ripple‘s RLUSD Crashes 54% After Surge in Volume: What’s Behind Drop？

According to data from CoinMarketCap, Ripple USD (RLUSD) — the stablecoin developed by San Francisco crypto company Ripple — has lost over 50% of its trading volume in the last 24 hours.

The logical question is, whats going on？ There is an interesting perspective on the answer.

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As things stand, the Ripple stablecoins market capitalization remains at $294 million, while its current trading volume is $35.8 million — and that is after a 56% drop from the previous day.

Before that, it was at $101.43 million, which is about a third of the stablecoin‘s total market cap, a significant amount. When the market cap to volume ratio is around 30%, that is a lot. What’s more, even now this ratio remains at 12.7%, which is also a sign of increased activity with the asset.

In this light, the over 50% decline in the stablecoin is more of a decline from the peak of activity, rather than an overall abandonment of the asset.

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Interestingly, analyzing the historical volume data of RLUSD reveals that the stablecoin is indeed capable of such volume spikes. For example, just three days ago, the daily volume was $49.7 million, and three days before that it was just $13 million.

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Ripple USD got a significant boost after major U.S. cryptocurrency exchange Kraken announced its listing last week. With only it and Bitstamp among the top centralized platforms offering RLUSD trading, the stablecoin still has a massive listing trigger on its way to further boost both market cap and volume.

Not to mention that $100 million in daily volume is already a lot.