XRP, the seventh largest cryptocurrency, recently reached a major milestone in the decentralized finance (DeFi) market. According to XRPscan, a leading XRP Ledger explorer, the total amount of XRP pooled in the XRPL Automated Market Maker (AMM) has surpassed 10 million XRP. This milestone highlights the growing adoption and utilization of XRP in DeFi.
XRP, the seventh-largest cryptocurrency, recently reached a major milestone in the decentralized finance (DeFi) market. According to XRPscan, a leading XRP Ledger explorer, the total amount of XRP pooled on the XRPL Automated Market Maker (AMM) has surpassed 10 million XRP. This milestone highlights the growing adoption and utilization of XRP in DeFi.
Automated market makers (AMMs) are a type of decentralized exchange mechanism that uses liquidity pools to algorithmically value assets rather than creating bids with preset specifications. Liquidity pools allow holders to earn a portion of trading fees by offering their tokens as liquidity.
In the case of XRP Ledger, an integrated central limit order book (CLOB) handles all XRPL transactions for fungible tokens. This CLOB has been part of the XRPL since its inception and offers the advantages of fewer trust assumptions and centralized liquidity, unlike the inherent vulnerabilities of smart contracts.
Tomiwabold OlajideIn addition to the existing CLOB, an automated market maker (AMM) for the protocol was voted in Q1 2024, as specified by the XLS-30 standard.
The growth in the amount of XRP locked in AMM pools to 10 million XRP reflects a strong commitment to the XRPL infrastructure.
as the total Pooled XRP If the XRPL AMM rises, it could attract even more participants to the XRP Ledger. Greater liquidity and user participation can lead to more innovations, new financial products, and a stronger DeFi environment.
In related news, digital asset investment products saw outflows of $584 million for the second consecutive week, shedding $1.2 billion. Bitcoin was the main focus, with $630 million in outflows.
In contrast, XRP recorded inflows of $0.7 million, indicating that investors viewed the altcoin market decline as a buying opportunity.
At the time of writing, after the latest announcement from Mt. Gox.
