The data shows that XRPL’s liquidity contribution and governance interaction to the DEX has increased significantly, with AMM deposit volume increasing by 62.35%. Analysts suggest that the current drop in XRP prices may be poised for a rally, supported by the growth in XRPL capabilities.
Automated Market Makers (AMMs) on the XRP Ledger (XRPL) network have seen a significant increase in trading activity. Daily trading volume has increased 40 times compared to just a week ago. This 40x jump shows the growing interest in XRPL’s decentralized trading framework. Furthermore, many in the cryptocurrency community point out that AMM functionality’s new liquidity and trading capabilities are key drivers of this growth.
XRPL AMM Volume Spike
Blockchain Backer, an influential crypto analyst in the Web3 space, recently noted this increase in AMM volume. “#XRP AMM volume is exploding. Daily trading volume is 40x what it was a week ago.” It offers attractive features to both institutional and institutional participants.
Since AMM went live, XRPL has observed significant growth in both AMM-based transactions and decentralized exchange (DEX) activity. According to CryptoQuant data, XRPL’s DEX has seen a 17.6% increase in trading volume over the past month due to a surge in platform engagement, CNF reported.
Additionally, the liquidity contribution within XRPL increased significantly, with AMMMDeposit volume increasing by 62.35% and AMMCreate activity surging by 143.1%. Governance interactions saw a similar boost with AMMVote activity increasing by 65.22%, demonstrating active participation by the XRPL community.
Many attribute this surge in activity to AMM’s ability to support several trading strategies while incentivizing liquidity providers through yield earning opportunities. The added liquidity and flexibility could draw more users to XRPL as a decentralized alternative to CEX.
According to a report from CNF, Ripple also launched a custody solution on the XRP ledger earlier this month.
XRP Price Analysis and Growth Potential
Along with the growth of XRPL, XRP itself has also experienced significant price fluctuations. On Friday, the XRP price briefly traded at $0.4935 amid a market downturn, but managed to recover and reached $0.5144 on Saturday. However, it fell back below $0.50.
However, market analysts have observed that XRP has recently broken out of its long-standing trend line. This breakout first occurred in August, when XRP rose from a low of $0.4335 to a high of $0.6416. Random Crypto Pal, a popular crypto analyst at X, shared his views on the current market situation.
He suggested that a major price move for XRP could be imminent. He considered the recent drop in XRP price to be a “perfect retest of both trend lines.” This suggests that the recent decline in XRP could be setting the stage for an impending bull market, according to the CNF report.
For further context, in September, XRP price reached an all-time high of $0.6622, its highest since retreating from its yearly high. However, despite analysts’ belief in an “uptober,” the stock fell to a two-month low in October. Nevertheless, some analysts believe this decline may be temporary as XRP price appears to be testing major support zones.
With new momentum in XRPL’s AMM and DEX capabilities, Random Crypto Pal believes “an explosion is on the way” in XRP price. Additionally, Ripple’s continued development of projects such as the RLUSD stablecoin may also contribute to the increased interest in the XRP ecosystem.
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