Ripple’s dollar-pegged stablecoin RLUSD is seeing a period of supply reductions, with millions of tokens permanently removed from circulation in a series of burn transactions tied to Ripple’s treasury activity. Blockchain trackers monitoring RLUSD activity show that multiple large burns have taken place recently, eliminating tens of millions of tokens from supply. The most recent burn alone accounted for 25 million tokens in one move, but that figure only tells part of the story.
Latest Burn Eliminates 25 Million RLUSD
The most recent transaction flagged by the Ripple Stablecoin Tracker on X saw 25 million RLUSD burned at the RLUSD treasury, the headline figure in what has been a multi-step reduction of the stablecoin’s circulating supply in recent days. Stablecoin burns permanently remove tokens from circulation by sending them to an inaccessible address, making them impossible to recover or spend again. In the case of RLUSD, the transaction effectively wiped out 25 million tokens from the total supply. That alone would have been notable, but multiple additional burns preceded it.
Before the latest 25 million token burn, Ripple had already destroyed several million RLUSD in separate transactions. These burns were carried out on both the Ethereum blockchain and the XRP Ledger, which are the two blockchains that RLUSD runs on.
Ripple Stablecoin Tracker on X recorded a transaction in which 8 million RLUSD were permanently removed from circulation. That burn did not occur in isolation. It followed another earlier transaction that destroyed 3 million RLUSD, continuing the pattern of supply reductions tied to Ripple’s treasury activity.
Looking further back, the sequence becomes even more notable. Prior to those two burns, the tracker had already flagged a 15 million RLUSD burn, followed by another 15 million RLUSD removal on the Ethereum blockchain. Before that, a separate transaction that eliminated 10 million RLUSD from circulation on the XRP Ledger.
Why These Burns Keep Happening
The volume of burns in recent days is not a red flag but a feature. RLUSD operates under a reserve-backed model in which every token in circulation corresponds to a dollar held in reserve. Ripple burns the tokens to guarantee the circulating supply never exceeds what is backed when holders redeem their RLUSD.
Burns of this scale would only become a concern if they consistently outweighed the number of tokens being created. That does not appear to be the case with RLUSD. Updates from the Ripple Stablecoin Tracker account show that the recent burns have been accompanied by even larger minting activity. In the past few days alone, the RLUSD treasury minted 3 million RLUSD, 6 million RLUSD, 29 million RLUSD, and 14.9 million RLUSD, all of which entered circulation on the Ethereum network.
RLUSD itself has continued growing since its launch and has steadily climbed in size, with the stablecoin now holding a market capitalization of more than $1.56 billion.
Featured image created with Dall.E, chart from Tradingview.com
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