Analysis has found that Ripple’s dollar stablecoin RLUSD is operating in a way that grows XRP-based transactions rather than displacing XRP.

U.Today, a blockchain outlet, reported on June 30 that Evernode, introduced as an independent treasury manager for XRP, said based on Dune Analytics on-chain data that RLUSD and XRP are not in competition but split roles.

Concerns have recently grown in the XRP community that Ripple is placing more weight on its new dollar stablecoin RLUSD, reducing the need for volatile XRP. The argument was that if corporate payments within the XRP Ledger (XRPL) are made in stable dollar assets, liquidity could shift to RLUSD instead of XRP.

But Evernode said actual transaction flows moved in the opposite direction. As of its latest report, 52 percent of RLUSD’s total transaction volume is now circulating within the XRPL. As recently as April, that share was 17 percent, and most stablecoins at the time remained on Ethereum.

RLUSD’s share of transactions within the XRPL has also grown quickly. Evernode pointed out that in less than 18 months, RLUSD’s transaction share on the XRPL rose from under 1 percent to 12 percent. It explained that the market has not abandoned XRP, but that traders have started moving dollars more actively through the token.

The core is a division of roles between RLUSD and XRP. RLUSD provides a “clear dollar value” that companies can use for payments without exchange-rate fluctuations. XRP, meanwhile, remains a “bridge” asset that instantly connects different assets when there is no direct matching demand between transaction parties.

This structure is also reflected in the expansion of direct RLUSD/XRP trading pairs. The pair has generated $900 million in trading volume over the past six months. Evernode assessed this as the formation of a previously non-existent “dollar liquidity market”. It means the two assets are not competing for the same use, with one functioning as a payment unit and the other as a conversion route.

The network structure was also presented as a reason XRP is not being excluded. Orders, transfers and trades generated in RLUSD/XRP trading pairs all require network fees, and those fees are permanently burned. The more RLUSD-based payments increase, the more transaction activity linked to XRP also rises, and the amount of XRP burned increases accordingly.

Evernode said a model similar to the dollar’s role in traditional foreign exchange markets is being created on the Ripple blockchain. Just as the dollar serves as a connecting axis for exchanges among multiple currencies in global markets, it explained that within the XRPL, RLUSD provides dollar-based pricing while XRP handles instant conversion between assets.

As a result, more attention is being paid to the point that RLUSD’s spread could increase XRP’s utility by pulling liquidity into the XRPL, rather than the view that RLUSD will replace XRP. Evernode ultimately concluded that RLUSD does not push XRP out of the market, but is built on top of XRP to create liquidity and also raise the native token’s burn rate.

The analysis shows it is not only a question of whether expanding stablecoins replace existing native tokens. On the XRPL, RLUSD takes on the dollar payment axis while XRP handles conversion and the fee structure, and the separation of functions between the two assets is leading to transaction liquidity and network activity.

1/5 The worry we keep hearing: as RLUSD grows on XRP, RLUSD starts to eat XRP. We pulled every RLUSD trade on-chain to check. To date, the data shows the opposite. This content is for informational purposes only and does not constitute investment advice. This content may… pic.twitter.com/zq1e0ehZou