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Ripple minted 600,00 RLUSD tokens at the RLUSD Treasury on Friday.
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The firm controls the scarcity of RLUSD to ensure that it does not overshadow XRP.
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Analyst Arthur said that the 20th of January could be an ideal day to increase supply.
Ripple’s RLUSD stablecoin, launched last year and backed by the dollar, has had a limited supply ever since its launch, reaching its cap soon after its release. The fintech giant seems to be taking a more strategic approach to minting in order to create value for its holders and control scarcity.
Ripple’s RLUSD Treasure minted over 600,000 RLUSD on Friday, marking the first significant increase in supply in months. XRP trader Arthur stressed the importance of scarcity when speaking on X, formerly Twitter.
Arthur pointed out that a surge in supply can lead to inflation and a drop in prices, as well as a loss of market confidence.
Currently, the total supply of RLUSD tokens is 53.1 million. Ripple appears to be prioritizing the organic demand over further increasing circulation. Pouring tokens prematurely into the market could risk devaluation and undermine the stablecoin’s $1 price target.
Scarcity as a strategic advantage
Ripple’s scarcity-driven strategy signals its commitment to stability and adoption over the long term, rather than chasing after short-term trends. Arthur highlighted that Ripple’s reputation as a responsible manager of RLUSD is reinforced by this scarcity-driven approach.
Ripple’s cautious approach could also be a result of regulatory considerations. The firm probably holds a large reserve of RLUSD tokens, but releases them selectively in order to avoid possible scrutiny over market manipulation and compliance issues.
Read Also: XRP Market Resilience: Top Three Despite Ongoing SEC Litigation
RLUSD flooding the market could also overshadow XRP – Ripple’s flagship crypto – which has recently become bullish following a long period of stagnation. Arthur suggested that Ripple may be waiting for increased adoption by institutions or significant market demand to expand RLUSD’s stock.
Arthur predicted that the 20th of January could be a significant date for increasing RLUSD supply. This could align with broader institutional developments, or regulatory clarity.
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