Ripple USD (RLUSD) stablecoin has witnessed another intense token burn on the Ethereum network. Although RLUSD operates natively on both the XRP Ledger (XRPL) and Ethereum, it is currently being destroyed permanently; more on the latter.
Why RLUSD burn on Ethereum:
The Ripple stablecoin tracker account on X announced the burning of 40 million RLUSD. These tokens were permanently removed from circulation and sent to inactive wallet addresses.
For a fully backed stablecoin like RLUSD, token burns are usually normal, not a negative event.
🔥🔥🔥🔥🔥🔥🔥 40,000,000 #RLUSD burned at RLUSD Treasury.https://t.co/zGyqZSdprG
— Ripple Stablecoin Tracker (@RL_Tracker) March 24, 2026When large holders redeem RLUSD for U.S. dollars from Ripple’s reserves, the corresponding tokens must be destroyed.
Burning ensures the circulating supply always exactly matches the fiat reserves held in the bank. It prevents any over-issuance and is the opposite of minting, which happens when new Ripple issues fresh RLUSD tokens.
However, the 40 million RLUSD is just the latest in a series of burns witnessed today. As reported by U.Today, Ripple executed a massive 30 million RLUSD burn across two transactions.
In total, the RLUSD Treasury has burned 45 million RLUSD over the last seven days, while minting only 10 million RLUSD.
Is demand for RLUSD falling?
Typically, frequent burns paired with mints indicate real institutional usage and liquidity management. It keeps the stablecoin trustworthy and compliant, a crucial factor for enterprise adoption.
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However, the recent frequent RLUSD burns have raised questions about whether demand for the stablecoin is dropping.
Large burns often signal real institutional usage, not lack of demand. Ripple actively mints when fresh demand comes in and burns on redemptions.
Moreover, the RLUSD circulating supply currently sits around $1.48 billion market cap and recently hovered around $1.55 billion. The stablecoin is still on track to reach the $2 billion milestone, even though the March burn has temporarily slowed the net growth pace.
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