Ripple’s RLUSD stablecoin saw a significant decline in market cap, according to U.Today. Major burns occurred on July 5, 2026, reducing its value to $1.4 billion as competition increases with the launch of Open USD (OUSD).
What happened
On July 5, 2026, blockchain data indicated that around 146 million RLUSD tokens were burned on the XRP Ledger. This massive reduction caused its market capitalization to shrink from nearly $1.9 billion to just $1.4 billion, according to CoinGecko. The burns were significant enough for Ethereum to surpass the XRP Ledger in RLUSD issuance.
The emergence of Open USD, a new dollar-pegged stablecoin, coincided with the decline of RLUSD. Ripple recently joined a consortium of over 140 companies, including BlackRock and Mastercard, to promote OUSD. This new stablecoin aims to solve issues of scalability and governance within the market.
As Ripple aligns itself with this consortium, reactions within the XRP community vary. Some believe that OUSD could enhance crypto adoption, while others, like Anodos CEO Panos Mekras, raised concerns about direct competition with Ripple’s existing stablecoin.
Why it matters
The decline of RLUSD highlights the increasing competition in the stablecoin market. As new players like Open USD enter the scene, established tokens may face pressure to innovate and maintain market share. The situation raises questions about the future viability of RLUSD amid emerging options backed by significant financial institutions.
Market reactions have also shown that the competitive landscape can impact share prices of related businesses, as seen with Circle’s stock drop following the OUSD announcement.
Background
On May 27, 2026, Ripple’s RLUSD reached its peak market capitalization of nearly $1.9 billion. However, subsequent developments, particularly the impending launch of Open USD, led to heightened scrutiny of RLUSD’s position in the market. The introduction of OUSD has intensified discussions within the cryptocurrency community about the effects on less established stablecoins.
What’s next
Following the successful launch of Open USD, further developments are expected as Ripple and its collaborators work to implement the new stablecoin infrastructure, targeting an official rollout by September 2026.
