Ripple’s RLUSD stablecoin is experiencing a period of supply decline, with millions of tokens set to be permanently removed from circulation following a series of burn transactions linked to Ripple’s treasury activities. Blockchain trackers monitoring RLUSD activity show that multiple huge burns have occurred recently, eliminating tens of millions of tokens from supply. The last burn alone resulted in 25 million tokens in one move, but that’s a number only tells part of the story.
The latest burn eliminates RLUSD 25 million
Last transaction tagged by Ripple Stablecoin Tracker on day Burning a Stablecoin permanently removes tokens from circulation by sending them to an inaccessible address, making them impossible to recover or re-issue. In the case of RLUSD, the transaction effectively removed 25 million tokens from the total supply. This alone would have been noteworthy, but it was preceded by many additional burns.
Before the recent burn of 25 million tokens, Ripple had already destroyed several million RLUSD in separate transactions. These burns were performed on both the Ethereum blockchain and the XRP Ledger, which are the two blockchains on which RLUSD operates.
Ripple Stablecoin Tracker on X registered the transaction in which RLUSD 8 million was permanently withdrawn from circulation. This burn did not occur alone. Another one followed previous transaction which wiped out 3 million RLUSD, continuing the pattern of supply reduction associated with Ripple’s treasury activity.
Looking further back, the sequence becomes even more noticeable. Before these two burns, the tracker had already flagged the burning of 15 million RLUSD, which was followed by another removal of 15 million RLUSD from the Ethereum blockchain. Previously, a separate transaction eliminated RLUSD 10 million from circulation on the XRP ledger.
Why do these burns keep happening
The number of burns in recent days is not a warning sign, but a characteristic feature. RLUSD operates on a reserve-based model, where each token in circulation corresponds to a dollar held in reserve. Ripple burns tokens to ensure that the circulating supply never exceeds the amount secured when holders redeem their RLUSD.
Burns on this scale would only become a problem if they consistently outnumbered tokens being created. That’s true It doesn’t seem like that’s the case from RLUSD. Updates from the Ripple Stablecoin Tracker account show that the latest burn was accompanied by even more minting activity. Just in the last few days RLUSD treasury issued 3 million RLUSD, 6 million RLUSD, 29 million RLUSD and 14.9 million RLUSD, all of which entered circulation on the Ethereum network.
RLUSD it has continued to grow since then its launch and is constantly growing, and the market capitalization of this coin is currently over $1.56 billion.
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