XRPL DeFi experiences a surge in growth as its AMM pool expands from 277 to 316, resulting in an increase in locked XRP tokens from 1.8 million to 2.15 million.
An analyst predicts that XRP has the potential to replicate its impressive 942% surge in 2021 and reach $5 following the Bitcoin halving.
The Decentralized Finance (DeFi) industry has witnessed significant growth in recent years, with market size projected to reach $78.47 billion by 2029, at a Compound Annual Growth Rate (CAGR) of 10.98%, compared to the estimated size of $46.61 billion in 2024.
XRPL is one of the platforms contributing significantly to this growth and is poised to dominate the sector in the near future. Recent data reveals that XRPL’s Automated Market Maker (AMM) pool experienced remarkable growth, increasing from 277 to 316.
This growth has led to a substantial increase in the number of XRP tokens locked within XRPL AMMs, rising from 1.8 million to 2.15 million, as reported by data.
Further analysis from XRPScan, the leading explorer of the XRP Ledger, shows that there are currently 221 tokens within the ecosystem, along with 214 unique tokens, 189 XRP pairs, and 348 active pools. The USDC/XRP pair dominates the sector in terms of volume, with a total locked amount of 489,821 XRP, followed by XRPS/XRP (292,649 XRP locked) and SOLO/XRP (222,778 XRP).
The significant growth of the ecosystem highlights the increasing confidence in the DeFi arm of XRPL and its liquidity provisions. The rise in active pools and locked XRP tokens indicates a dynamically expanding ecosystem.
Market analysts, such as Zach Rector, suggest that these impressive figures could contribute to a market shift. Rector observes that the growing use of XRP for various purposes, the development of bridges, and the presence of strong holders could potentially reduce its liquid supply over the next few years. This could result in a supply shock, leading to scarcity and driving up the token’s price in the next 5 to 10 years.
Currently, the price of XRP has fallen below its long-standing support level at $0.60. It has a negative year-to-date return of 22% and its market dominance has reduced to 1.2%. However, some analysts believe that the asset could reach $5 after the Bitcoin halving, citing the 942% surge it experienced in 2021 following the 2020 Bitcoin halving. On April 14, 2021, XRP reached $1.9650 during its bull run. EGRAG CRYPTO, a popular crypto analyst, suggests that the current market correction is an opportunity to buy rather than despair.
Based on his analysis, the asset has been oscillating between bullish sentiment and bearish pressure. In a previous analysis, EGRAG CRYPTO noted the formation of a “three camel humps,” indicating the potential for a surge in price.
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