New data reveals a significant increase in liquidity contributions and governance interactions on XRPL’s DEX, with AMM deposit volumes rising by 62.35%. Analysts are suggesting that the current pullback in XRP price could be setting the stage for a rally, supported by the growing functionality of XRPL.
The Automated Market Maker (AMM) on the XRP Ledger (XRPL) network is experiencing a notable surge in trading activity. Daily transaction volumes have increased by 40 times compared to just a week ago, indicating a growing interest in XRPL’s decentralized trading framework. Many in the crypto community are pointing to the new liquidity and trading capabilities of the AMM feature as key drivers of this growth.
Blockchain Backer, a well-known crypto analyst, recently highlighted the increase in AMM volumes, noting that daily volumes are now 40 times higher than they were a week ago. With the ability to contribute liquidity across assets, the AMM appeals to both retail and institutional participants.
Since the launch of the AMM, XRPL has seen significant growth in AMM-based transactions and decentralized exchange (DEX) activities. According to data from CryptoQuant, XRPL’s DEX has witnessed a 17.6% increase in volume over the past month. Liquidity contributions within XRPL have also risen significantly, with AMM deposit volumes up by 62.35% and AMM create activity surging by 143.1%. Governance interactions have seen a similar boost, with AMM vote activity increasing by 65.22%, indicating active participation by XRPL’s community.
Many attribute this surge in activity to the AMM’s ability to support various trading strategies and provide incentives to liquidity providers through yield-earning opportunities. The added liquidity and flexibility could attract more users to XRPL as a decentralized alternative to centralized exchanges (CEXs).
Earlier this month, Ripple also launched its custody solutions on the XRP Ledger, signaling further growth potential for the platform.
In addition to XRPL’s growth, XRP itself has been experiencing significant price fluctuations. While XRP briefly traded at $0.4935 amid a market downturn, it managed to recover to $0.5144, only to slide back below the $0.50 mark.
Market analysts have observed that XRP recently broke out from a longstanding trendline, signaling a potential rally. Random Crypto Pal, a popular crypto analyst, shared his views on the current market situation, suggesting that a major price movement might be imminent for XRP.
Despite a decline to a two-month low in October, some analysts believe that this downturn may only be temporary, as XRP price appears to be testing a key support zone. With renewed momentum in XRPL’s AMM and DEX functionalities, many believe that an “explosion” in XRP price is imminent.
With Ripple’s ongoing development of projects like the RLUSD stablecoin, there is growing interest in the XRP ecosystem, contributing to the potential for further growth in XRP price.