- The October 10 crash erased over $19 billion in leveraged bets, marking the largest crypto liquidation on record.
- Ethena’s USDe briefly lost its peg, while Ripple USD remained stable at $1 during intense selling pressure.
- Ripple’s RLUSD climbed to rank 82 by market cap after maintaining its peg, signaling rising institutional confidence.
The crypto market witnessed one of its most turbulent moments on October 10, marking the largest liquidation event in digital asset history. Over $19 billion in leveraged bets were wiped out as a sudden flash crash shook global markets, sending funding rates to their lowest levels since the 2022 bear market. The event caused sharp dislocations across major stablecoins, highlighting deep stress within the system.
During the steep sell-off, several synthetic and algorithmic stablecoins briefly lost their dollar peg. Ethena’s synthetic dollar, USDe, fell sharply to $0.65 on Binance, sparking concerns about liquidity depth and trading reliability. The volatility underscored how swiftly liquidity can evaporate in highly leveraged environments. Despite the turmoil, one stablecoin managed to stand firm.
Ripple USD Maintains Its Peg
Ripple USD (RLUSD), introduced in December 2024, successfully maintained its $1 peg throughout the market shock. The stablecoin passed its first major stress test since launch, maintaining consistent value while other assets fluctuated heavily. Market analysts noted that RLUSD’s structure and institutional backing contributed to its stability during extreme volatility.
Following the event, RLUSD advanced to become the 82nd largest cryptocurrency by market capitalization. Its total value rose to $840.86 million, surpassing DeFi token Curve DAO (CRV). The consistent performance of RLUSD amid widespread liquidation has drawn renewed attention from both investors and institutional participants seeking stability within the digital asset space.
Growing Institutional Momentum
Ripple recently announced a strategic partnership with Bahrain’s FinTech Bay to promote the adoption of RLUSD and Ripple Custody solutions among key financial institutions. The collaboration aims to strengthen digital asset infrastructure across the Middle East, enhancing confidence in tokenized dollar products.
The October 10 flash crash has become a defining moment for digital assets, exposing vulnerabilities in leveraged trading while highlighting Ripple USD’s resilience. As markets stabilize, RLUSD’s performance positions it as a stable alternative in an otherwise volatile environment.
