Ripple’s RLUSD Stablecoin Hits $76M on Aave Within Days as Market Cap Nears $300M

Ripple’s RLUSD stablecoin is gaining momentum on Aave, the leading DeFi liquidity protocol. Within just four days of its listing, users have supplied $76 million worth of RLUSD to Aave V3’s Ethereum Core market, which went live on April 21. This integration allows users to supply and borrow RLUSD to earn interest, although the token cannot be used as collateral yet.

Aave has placed a $10 million borrow cap on RLUSD to mitigate risks associated with new assets. As a result, the stablecoin's utilization rate currently stands at 14.86%, according to Aave data. Meanwhile, RLUSD’s total market capitalization is rapidly approaching the $300 million mark, based on CoinGecko figures. Ripple anticipates that RLUSD, launched in December, could become one of the largest stablecoins by the end of 2025.

In a notable technical move, Ripple executed a “burn-to-mint” operation on Thursday, burning and minting 27 million RLUSD tokens. This mechanism enables cross-chain transfers between the XRP Ledger and Ethereum while maintaining the stablecoin’s peg, with transfers typically completed in about 20 seconds. While labeled a "burn," the process is not deflationary, as it only incurs a minor XRP network fee.

Currently, RLUSD operates across the XRP Ledger and Ethereum, but Ripple has hinted at potential future expansions to other networks such as Cardano. With rising liquidity, cross-chain functionality, and growing market cap, RLUSD is positioning itself as a major contender in the stablecoin market.