The Ripple USD (RLUSD) stablecoin experienced a brief surge, temporarily breaking its 1:1 peg with the U.S. dollar and trading at $1.04. Ripple's CTO, David Schwartz, attributed this event to the thin market structure of the XRP/RLUSD market, where an increase in XRP's price can impact RLUSD valuations. RLUSD, launched in December 2024, operates on the XRP Ledger and Ethereum, aiming to provide liquidity and support for Ripple's financial ecosystem. The incident highlights the challenges of stablecoin behavior in volatile environments. The XRP Ledger community is preparing to vote on creating an Automated Market Maker (AMM) pool for XRP/RLUSD, which could help address such issues by using algorithmic pricing models to maintain liquidity and stabilize prices. However, the vote is scheduled for two weeks later, leaving the market to manage without this mechanism in the meantime.



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