tl;dr
Over the past four days, Ripple USD (RLUSD) has not been minted at the stablecoin treasury. The last minting of 2,500,000 RLUSD occurred on Feb. 28, and there has been no additional minting in the past 96 hours. This pause in minting, which has occurred previously, is believed to be a deliberate mov...
Ripple USD (RLUSD) minting has been paused for the past 96 hours, potentially to balance demand and supply. This deliberate pause in minting could impact XRP's price stability and is seen as a move by Ripple to compete with stablecoin leaders.
The last minting of 2,500,000 RLUSD occurred on Feb. 28, and there has been no additional minting in the past 96 hours. This pause is believed to be a deliberate move by Ripple to balance demand and supply and prevent flooding the market. Industry experts suggest that this pause may be part of Ripple's strategy to compete with leaders in the stablecoin space.
Despite the pause in minting, XRP price experienced fluctuations, rising to a high of $2.937 after the last minting. As of the latest update, XRP price was at $2.40, a 9.33% decline from its previous level.
Although Ripple has not provided direct communication for this pause, it is not the first time minting has been halted. In February, Ripple did not mint any new RLUSD for over 10 days, a move analysts considered strategic. Industry experts argue that it is a deliberate move to balance demand and supply. Ripple may have halted minting to prevent flooding the market and affecting the token’s stability. Some analysts believe halting minting could positively impact XRP in the short term by stabilizing prices. Market watchers believe Ripple is doing this to stay competitive with leaders in the stablecoin space.
Interestingly, the last time Ripple minted RLUSD, the XRP price was trading at $2.14 on the cryptocurrency market. XRP experienced some price fluctuations after that, rising to a high of $2.937 following its inclusion in the list of U.S. Strategic Crypto Reserve. As of this writing, XRP price was changing hands at $2.40, a 9.33% decline from its previous level. If a similar trend plays out, the minting, despite the dried up liquidity, may not drag down the coin’s growth.