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- RLUSD adoption is increasing XRP Ledger activity rather than replacing XRP’s role.
- Bitcoin may face another decline before a possible July recovery attempt.
- Stablecoin growth and market cycles could shape crypto trends through late 2026.
The cryptocurrency market is entering the third quarter of 2026 with two major narratives unfolding at the same time. While Ripple’s RLUSD stablecoin is expanding rapidly across the XRP Ledger, on-chain data suggests its growth may be strengthening XRP’s role rather than replacing it. Meanwhile, Bitcoin remains under pressure, with technical analysts warning that another decline could come before a broader recovery attempt.
The latest market developments highlight a split picture: XRP’s ecosystem continues to grow through increased stablecoin activity, while Bitcoin traders prepare for possible volatility ahead.
RLUSD Expansion Increases XRP Ledger Usage
When Ripple introduced RLUSD, some XRP investors questioned whether a dollar-backed stablecoin could reduce demand for XRP. However, recent analysis from Evernorth’s on-chain research indicates the opposite trend.
RLUSD activity has increased sharply since launch. Monthly transactions have grown from tens of thousands in late 2024 to between 600,000 and 1.1 million transactions recently. The stablecoin’s share of trading activity on the XRP Ledger has also expanded from below 1% at launch to nearly 12%.
Despite this growth, XRP remains essential because every RLUSD transaction still operates on the XRP Ledger and requires XRP for network fees. As RLUSD adoption increases, the underlying blockchain activity supporting XRP also rises.
Stablecoin Growth Creates New Demand for XRP
A major driver behind RLUSD adoption is the growth of the RLUSD/XRP trading pair. The pair has recorded about $900 million in trading volume over six months, while total RLUSD trading pairs have processed more than $2.5 billion since launch.
The trend mirrors traditional financial markets, where the U.S. dollar acts as the main trading reference point. RLUSD appears to be taking a similar role within the XRP ecosystem by becoming a key liquidity asset, while XRP continues functioning as the settlement layer.
Evernorth data shows RLUSD supply on the XRP Ledger increased from around $20 million at the end of 2024 to nearly $800 million by June 2026. The stablecoin is now held by more than 45,000 accounts, with almost 94,000 trust lines created.
Bitcoin Bear Market Could Continue Before Recovery
While XRP’s ecosystem shows expansion, Bitcoin is facing a more uncertain technical outlook. Elliott Wave analysis suggests Bitcoin may experience another decline before a possible July recovery.
Bitcoin is currently trading below key resistance levels, with immediate resistance between $60,812 and $62,589. A move above this range could signal the beginning of a short-term rebound. However, analysts point toward possible support near $55,500–$56,000 if selling pressure continues.
Market indicators still show Bitcoin in a broader bearish phase, with price below major moving averages between $64,000 and $81,000. However, July seasonality and improving RSI momentum could create room for a temporary bounce.
Also Read: Ripple’s RLUSD Hits Major Milestone as XRP Ledger Surpasses Ethereum Supply — What Happens Next?
Analysts expect Bitcoin could attempt a July recovery before facing renewed pressure in August. Some forecasts place a possible market bottom around October, potentially ending the current bear cycle later in 2026.
At the same time, RLUSD’s rapid expansion suggests stablecoin adoption may continue strengthening the XRP Ledger economy. Rather than replacing XRP, the data indicates RLUSD could become another factor driving network usage and demand.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
