XRP Supports Live Dollar Borrowing on Ethereum, Dominated by Large Holders
- As of October 1, the Morpho market backed by FXRP had approximately $7.18 million in outstanding loans against $10.76 million in FXRP.
- 93% of the total debt is concentrated among three large addresses, indicating a lack of broad market adoption.
- Sentora RLUSD Main supplied about $8.53 million in RLUSD, accounting for nearly all liquidity available to borrowers.
- The largest borrower could withstand a roughly 45% decline in the FXRP-to-RLUSD ratio before facing liquidation risk.
- A smaller borrower with $121,000 RLUSD debt could reach its liquidation threshold after a mere 21% decline.
The current concentration of borrowing activity suggests that any significant repayment or new loan from these major wallets could drastically shift the market dynamics. As XRP prepares to introduce lending directly on its ledger, it may enhance access to credit and potentially reshape borrower demographics.
With three addresses holding most of the debt, the market’s future stability hinges on whether new borrowers emerge or existing holders increase their borrowing activities significantly.(Source)
