It seems that RLUSD is on its own in introducing new liquidity into the market.
Interestingly enough, the timing couldn’t be more bullish.
As the market turns back to risk-on, stronger liquidity flows are an important sign of whether the momentum will hold as high-caps break resistance, profit-taking increases, and leverage begins to build. This is why DeFiLlama’s latest data is worth noting.
As the chart below shows, RLUSD leads in capital flows over various timeframes, pushing its market cap to a new high above $2 billion.
To put this in perspective, RLUSD’s monthly supply has grown by over 30% while USDT’s supply has declined by 0.4%. Interestingly enough, the same trend is visible when comparing RLUSD’s flows with the other top 11 stablecoins.
Naturally, this momentum is already positioning XRPL in the spotlight.
According to the data from DeFiLlama, RLUSD represents over 90% of all stablecoins on the XRP Ledger and is up by more than 8% during the last 7 days. On the XRP Ledger, RLUSD’s total supply now exceeds $950 million.
By contrast, RLUSD represents only 0.7% of stablecoins on the Ethereum blockchain, underlining its strength on XRPL.
Notably, the impact of this divergence is starting to appear in price action as well. The XRP/ETH ratio closed last week up over 17% (its best weekly performance since the beginning of the Q1 2025 cycle).
Therefore, the key question that emerges is: Can RLUSD serve as a fundamental support for Ripple [XRP] against Ethereum [ETH] in this cycle?
RLUSD’s liquidity surge puts XRP’s market timing in focus
The timing of the RLUSD surge is beginning to coincide with XRP’s technical setup.
On the weekly chart, XRP exploded higher by over 53%, piercing the $1.50 resistance zone and posting the strongest weekly rally among high-cap assets.
As mentioned above, significant liquidity injections are of great importance in a market like this, where the dynamics of resistance, profit-taking, and leverage unwinding take place. XRP’s technical layer is clearly checking all the three boxes, making the continued growth in RLUSD supply even more important to watch.
From a technical perspective, the 30% increase in RLUSD supply, its stronger growth compared to the other 11 stablecoins, and the fact that more than 90% of RLUSD supply is on XRPL indicates increased liquidity on the network that could help absorb selling pressure and provide XRP with a stronger foundation to build on.
Thus, while the bearish opening of the week for the XRP/ETH could still be too early for a full-fledged trend reversal, if the on-chain liquidity growth of RLUSD persists, XRP could have the liquidity support to re-claim $1.50 and resume its relative strength against ETH.
In that case, the current pullback could be viewed as more of a reset than a trend reversal.
