According to the media, when RLUSD went online, it did not replace XRP as some XRP holders feared. Evernorth quoted Dune Analytics’s chain data to suggest that the dollar stabilization currency is more like the XRP Ledger supplementing dollar liquidity than competing with XRP.
Six months of trading, $900 million.
According to the article, the market had previously feared that more volatile XRPs could be marginalized if firms could use stable dollar settlements directly on XRPL. But Evernorth's judgment is that RLUSD and XRP are not the same division of labour in the chain.
According to its disclosure, RLUSD/XRP transactions generated a cumulative volume of approximately $900 million within six months. This means that the depth of the previously insufficient United States dollar transactions has been formed on the XRPL, and that the exchange between the chain assets is easier to complete.
RLUSD for pricing, XRP for bridge.
The article compared this structure to the United States dollar role in traditional foreign exchange markets. The main role of RLUSD is to provide a relatively stable United States dollar valuation tool for business settlements and to reduce the impact of exchange rate fluctuations.
At the same time, XRP is still considered a bridge asset on the chain. XRP can still be used for rapid conversion between different assets when the assets held by the parties do not directly match. This is also one of the primary uses of XRP in the XRPL system.
Processing fees on the chain are still consumed by XRP
Evernorth also mentioned that RLUSD/XRP-related transactions did not run independently from XRP. Whether the transfer, the order or the other chain operation involves payment of network charges, which are destroyed in the form of XRP.
According to this article, the RLUSD expansion did not squeeze XRP out of the system, but rather could increase the frequency and consumption of XRP in the network by increasing transaction and liquidity.
Additional information:It is a draft of a foreign media perspective based on the interpretation of the Dune Analytics data from Evernorth, without additional independent audits or an official Ripple note being disclosed.