XRP Ledger’s Decentralized Exchange Hits New Milestone with Over 7.5 Million $XRP Locked

The XRP Ledger’s automated market maker (AMM) has achieved a total value locked (TVL) of over 7 million $XRP, according to DeFi analytics platform DeXfi. The TVL has increased significantly in just a few weeks, with more trading pairs with XRP and larger inflows contributing to the growth of the locked assets.

The locked assets, which include XRP, Sologenic ($SOLO), USD Coin ($USDC), Bitcoin ($BTC), and Coreum ($CORE), are worth approximately $4 million. The 3.7 million XRP tokens contribute approximately $2 million to the locked assets.

Read Also: Exploring the Link between Global Events and the Recent Surge in Bitcoin and XRP Coin Prices

The Overview of SOLO/XRP AMM

The SOLO/XRP AMM pool holds the largest share of locked assets, with a TVL of 1.5 million XRP, followed by the USDC/XRP pool. The new platform enables XRP token holders to trade in a permission less way using liquidity pools rather than traditional order books. Liquidity providers who supply two or more tokens to the pools used to settle trades will receive revenue every time a trade is conducted using that pool.

However, the revenue comes with the risk of impermanent loss, where the ratio of tokens within the pool can be altered by price fluctuations. The loss is considered to be impermanent because the ratio of tokens can be restored, in which case the token provider would be gaining the fees collected over time.

A popular cryptocurrency analyst has recently predicted XRP’s price will explode to over $200 per token, an over 30,000% rise from its current level. The XRP Ledger has been progressing over time, with the total amount of XRP locked onto the AMM platform recently surging from around 330,000 XRP tokens to over 715,000 XRP, worth over $400,000, at a time in which the AMM platform is set to get key bug fix.

Read Also: XRP Poised for Breakout Amidst Legal Battle and Bullish Technicals

The rise in locked XRP also comes shortly after Ripple announced its plans to launch a stablecoin pegged 1:1 to the US dollar (USD), which is expected to exceed $2.8 trillion by 2028. The stablecoin market will be launched both on the XRP Ledger and on Ethereum.

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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informedĀ decisions.