Ripple suddenly destroys 5 million RLUSD stablecoins, is it a strategic adjustment or a market signal?

On January 22, 2026, Ripple’s USD stablecoin RLUSD completed a burn operation of up to 5,000,000 tokens. This funds were permanently removed from circulation, occurring shortly after the stablecoin announced its listing on a major exchange.

The market capitalization of RLUSD rapidly grew to $1.33 billion in the short term, successfully ranking among the top ten stablecoins. According to Gate data, Ripple’s native token XRP is currently priced at $1.95, with a trading volume of $276.27 million in the past 24 hours, and a market cap of approximately $118.47 billion.

Key Event

Ripple burned 5,000,000 RLUSD stablecoins on the XRP Ledger. This operation took place at a critical moment when RLUSD announced its listing on a leading global exchange, immediately attracting significant market attention.

Tracking data shows that this massive burn was achieved by transferring tokens to an empty address, meaning these stablecoins were permanently removed from available supply. Currently, RLUSD’s total supply is about 728.7 million tokens, and this burn reduced the circulating supply by approximately 0.69%.

The burn was not an isolated event; Ripple had previously executed multiple large-scale burns in early September 2025, including two transactions of over one million tokens on September 3 and another burn on August 29, destroying about 6 million RLUSD in a very short period.

Burn Logic

The mechanisms of stablecoin burning and minting are essentially tools for dynamic supply management. Like other asset-backed stablecoins, RLUSD maintains a 1:1 peg with the US dollar and operates on the XRP Ledger and Ethereum network.

When users exchange RLUSD for actual USD, these stablecoins are burned; conversely, when market demand increases, new tokens are minted from the treasury into circulation. This balancing act is a routine operation for major stablecoin issuers.

On January 8 and 16, 2026, RLUSD’s treasury minted 20 million new tokens respectively. In stark contrast to recent burns, this “dance” between burning and minting appears to be Ripple’s proactive strategy to respond to market forces and redemption requests.

Ecosystem Impact

The RLUSD burn event has triggered multiple ripple effects within the XRP ecosystem. On one hand, RLUSD’s recent trading volume surged over 129% in 24 hours, with trading activity increasing by 145.56% to $49.55 million. On the other hand, XRP’s own performance showed divergence: trading volume increased by 182.66% to $3.85 billion, but its price fell by 3.58% to $1.97, indicating a complex market reaction to Ripple’s ecosystem development.

Importantly, each RLUSD transaction generates fees that lead to the destruction of a small amount of XRP. This mechanism means that increased RLUSD usage will gradually reduce the total supply of XRP, providing a supply-side support for XRP’s value.

Market Trends

According to Gate data, as of January 22, 2026, XRP’s current price is $1.95, up 2.90% in the past 24 hours but down 8.11% over the past 7 days. XRP’s market cap has reached $118.47 billion, accounting for 6.11% of the cryptocurrency market.

Price-wise, XRP’s average price in 2026 is expected to be around $1.94, with a potential fluctuation between a low of $1.77 and a high of $2.23. Looking further ahead, by 2031, XRP’s price could reach $3.58, representing a potential 75% growth compared to current levels.

Data from the Gate platform shows XRP’s 24-hour trading volume at $276.34 million, with a historical high of $3.65, and a historical low of only $0.002686.

Future Outlook

Ripple President Monica Long predicts that the transformation of the crypto market in 2026 will revolve around four key areas: stablecoins, on-chain assets, crypto custody, and AI automation. She emphasizes that institutional adoption will become the main driver of stablecoin growth. Industry executives generally believe that stablecoins are shifting from “cryptographic primitives” to becoming the core settlement infrastructure for decentralized finance and the broader financial system. The development of regulatory frameworks will lay the foundation for stablecoin growth and competition, and by 2026, regulated USD-backed stablecoins are expected to be directly integrated into mainstream payment systems.

The stablecoin industry in 2026 is expected to see increased global penetration, broader merchant acceptance, and deep integration with digital wallets. With $230 billion worth of idle stablecoins seeking yield opportunities, decentralized finance protocols could become a major channel for capital flow.

As of January 22, 2026, RLUSD has rapidly grown into a mainstream stablecoin with a market cap of $1.33 billion, ranking in the top ten industry-wide. Its 24-hour trading volume surged over 129%, demonstrating strong market interest in the Ripple ecosystem. XRP’s price increased slightly by 2.90% in the past 24 hours to $1.95, but the weekly decline remains at 8.11%. Market analysis indicates that XRP’s average price in 2026 may fluctuate around $1.94, with an estimated range between $1.77 and $2.23.

The future of the Ripple ecosystem depends not only on XRP’s performance but also on whether RLUSD can successfully integrate into the global financial system. As stablecoins become central tools for enterprise payments, fund management, and B2B settlements, the synergy between RLUSD and XRP will face a real market test in 2026.