• Ripple minted 600,000 RLUSD tokens on Friday at the RLUSD Treasury.
• The firm is controlling the scarcity of RLUSD so that it doesn’t overshadow XRP.
• Analyst Arthur predicted that 20th January could be a good day to expand supply.

Ripple’s RLUSD, the dollar-backed stablecoin launched last year, has maintained a tight supply since its debut, hitting its cap shortly after release. The fintech giant appears to be taking a strategic approach to minting, aiming to control scarcity and create long-term value for holders.

On Friday, over 600,000 RLUSD tokens were minted at Ripple’s RLUSD Treasury, marking the first significant supply increase in months. XRP trader Arthur, speaking on X (formerly Twitter), emphasized the importance of scarcity in maintaining RLUSD’s value.

“A surge in supply could lead to inflation, driving prices down and destabilizing market confidence,” Arthur noted.

Currently, RLUSD’s total supply stands at 53.1 million tokens. Ripple seems to be prioritizing organic demand before further increasing circulation. Pouring tokens into the market prematurely could risk devaluation, undermining the stablecoin’s $1 price target.

Scarcity as a Strategic Advantage

Ripple’s approach to scarcity signals its commitment to long-term stability and adoption rather than chasing short-term market trends. Arthur highlighted that this scarcity-driven strategy reinforces Ripple’s reputation for managing RLUSD responsibly.

Ripple’s cautious approach may also be tied to regulatory considerations. The firm likely holds a substantial reserve of RLUSD tokens but releases them selectively to avoid potential scrutiny over market manipulation or compliance issues.

Read also: XRP’s Market Resilience: Top 3 Despite Ongoing SEC Lawsuit

Additionally, flooding the market with RLUSD could overshadow XRP, Ripple’s flagship cryptocurrency, which recently turned bullish after a prolonged stagnant period. Arthur suggested that Ripple might be waiting for increased institutional adoption or significant market demand before expanding RLUSD’s supply.

Arthur predicted that January 20 could be an important date for scaling up RLUSD’s supply, potentially aligning with broader institutional developments or regulatory clarity.