Why Ripple’s RLUSD Growth Highlights Ethereum, Not XRPL, as the Real Winner

Ripple’s RLUSD surged to a market capitalization of nearly $789 million, cementing itself as one of the fastest-growing assets in 2025. Launched in late 2024 to power cross-border payments, tokenization, and DeFi applications, the US dollar stablecoin has attracted major institutional players like DBS and Franklin Templeton.

Yet beneath the headline growth lies the overlooked reality that most of RLUSD’s supply lives on Ethereum, not the XRP Ledger (XRPL).

Ethereum Dominates RLUSD Supply

According to DefiLlama, more than $700 million of RLUSD or about 88% of its total supply, sits on Ethereum. Meanwhile, less than $90 million circulates on XRPL, Ripple’s native blockchain.

Ripple’s RLUSD on Ethereum vs. XRPL. Source: DefiLlama

Despite Ripple’s framing of XRPL as the core infrastructure for RLUSD, new issuances since early 2025 have almost exclusively launched on Ethereum.

This shift has sparked unease among XRP holders who long believed that stablecoin adoption would directly translate into higher demand for XRP.

Since every transaction on XRPL requires fees in XRP, investors expected RLUSD growth to drive burns and enhance token utility. Instead, the bulk of activity bypasses XRPL altogether.

RLUSD adoption, such as by renewable energy firm VivoPower, may only have a limited effect on XRP. Why? XRP plays no role in RLUSD transactions on Ethereum.

“Although Ripple issues RLUSD on both the XRP Ledger (XRPL) and Ethereum, the majority of its supply has been minted on Ethereum,” wrote a popular account on X (Twitter).

Chainlink community liaison Zach Rynes echoed the sentiment, indicating that XRP’s burn rate from RLUSD transactions is minuscule compared to total supply.

“RLUSD largely displaces the need for XRP for cross-border transactions. Over 80% of RLUSD is on Ethereum. Ethereum doesn’t use XRP. XRP holders don’t receive revenue from RLUSD,” wrote Rynes.

Ripple’s Strategic Dilemma Amid RLUSD’s Limited Impact on XRP

Ripple has pitched RLUSD as a bridge between traditional and decentralized finance (TradFi and DeFi), with use cases expanding into tokenized money market funds and repo trades.

Its partnerships with DBS, Franklin Templeton, SBI Holdings, and African fintechs have boosted adoption, pushing the stablecoin’s market cap up tenfold in 2025 to $789.44 million as of this writing.

Ripple’s RLUSD Market Cap. Source: CoinMarketCap

However, RLUSD’s Ethereum-heavy footprint challenges Ripple’s narrative that XRPL remains the backbone of its ecosystem.

“A long-time XRP holder discovered that RLUSD lives on Ethereum. He was in awe and wondered what the point of Ripple was. He later swapped his XRP for LINK and ETH,” wrote user jfab.eth.

Ripple also faces stiff competition. Despite its rise, RLUSD still trails rivals like PayPal’s PYUSD, BlackRock’s BUIDL, and the WLF stablecoin in market capitalization.

Stablecoin chains. Source: DefiLlama

While Ethereum integration unlocks DeFi liquidity, it also means Ripple’s flagship product grows in ways that do not directly support XRP holders.

For a community that has long anticipated XRP utility gains from Ripple’s innovations, the revelation that 88% of RLUSD is on Ethereum sparks equal parts disillusionment and debate.