Ripple’s dollar-pegged stablecoin is exploding in adoption while XRP bleeds value, and the reason behind that split tells XRP holders something uncomfortable about their investment.
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Ripple USD (CRYPTO: RLUSD), the company’s dollar-pegged stablecoin, has surged by 86% in 2026, reaching a market value of $2.49 billion across all the blockchains it operates on. In contrast, XRP (CRYPTO: XRP) has declined 18% and currently trades 59% below its all-time high. This situation raises a crucial question for XRP holders: does RLUSD negatively impact XRP, or is it simply outpacing it?
At $1.49, XRP is well below its peak of $3.65, reached on July 17, 2025, and has fallen 47.2% over the past year. The key to understanding this dynamic is what RLUSD demands of users and whether any of it requires purchasing XRP.
RLUSD Grew 86% in 2026 While XRP Fell 18%
Stablecoins are designed to maintain a value of $1 and are backed by cash and short-term government debt held in reserve. Businesses use stablecoins to transfer and store dollars across blockchains, so RLUSD’s market value reflects the dollars customers have deposited, highlighting adoption rather than price.
A significant portion of RLUSD’s growth has occurred on Ripple’s own network. In total, stablecoins on the XRP Ledger—the public blockchain for XRP—amount to around $1.2 billion, with RLUSD claiming an impressive 92% share. Additionally, Ripple introduced Mint, a platform that lets institutions generate new RLUSD against deposited dollars. Currently, RLUSD is just $248 million short of PayPal USD (CRYPTO: PYUSD), the stablecoin issued by PayPal (NASDAQ: PYPL | PYPL Price Prediction).
RLUSD Holders Never Have to Buy XRP
RLUSD users are primarily interested in maintaining a $1 value and do not need to interact with XRP’s price dynamics. Ripple has characterized Mint as a pathway to RLUSD, and XRP is not required to create, hold, or redeem the stablecoin. This means that banks can process transactions using RLUSD without ever needing to purchase XRP.
The connection between the two assets is marginal. Every transaction on the XRP Ledger incurs a small fee paid in XRP, and each wallet on the ledger must retain a minimal XRP reserve. Consequently, increased activity around RLUSD could use some XRP, but this amount is far less than the volume of XRP traded daily.
Revenue from RLUSD primarily benefits Ripple. As issuers earn interest on the reserves backing their coins, every dollar stored in RLUSD contributes to the company’s income. Since Ripple operates as a private entity, this income remains separate from XRP holders and is not included in any public financial statements.
The Long-Term Risk Is RLUSD Doing the Job Ripple Once Pitched for XRP
Ripple has long positioned XRP as a bridge currency, intended to facilitate instantaneous conversions between different currencies for payment providers. Supporters often cite this role as a primary reason to invest in XRP, especially for cross-border transactions.
However, a stable dollar is easier for banks to manage than a token that has dropped 47% in value over the past year. If Ripple’s clients begin settling payments using RLUSD instead of converting through XRP, the stablecoin could start to assume responsibilities XRP was once touted for. This shift would reduce institutions’ incentive to hold XRP.
As a result, demand for XRP must come from investors who wish to own it for its own merits. Recently launched U.S. spot XRP exchange-traded funds (ETFs) have begun to meet some of this demand, taking in approximately $75.6 million from September 22 to 25, indicating that this influx of capital will require purchasing XRP.
Does RLUSD Hurt XRP Holders?
Currently, RLUSD appears not to have negatively impacted XRP, but it hasn’t offered any benefits either. Ripple continues to expand its product line, earn income from reserves, and extend its reach into institutions, while XRP remains down 47.2% over the past year and collects only minor transaction fees.
The longer-term risk of RLUSD overtaking the role Ripple once envisioned for XRP warrants close monitoring. If RLUSD closes its $248 million gap with PayPal USD while XRP’s price remains stagnant, it could suggest the two assets are diverging in value.
Conversely, if Ripple introduces a product linking XRP with RLUSD for settlement, it could rekindle interest among XRP holders, giving the stablecoin’s growth a compelling reason to benefit the token as well.
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