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Ripple’s XRPL DeFi Surge: AMM Pools Exceed 315, Locked XRP Surpasses 2.2 Million  

John KumiBy 0Edited by John Kiguru 18. April 20243 Mins Read
  • XRPL DeFi boom as its AMM pool records an impressive growth from 277 to 316, pushing the locked XRP tokens from 1.8 million to 2.15 million. 
  • Analyst predicts that XRP could replicate its 942% run in 2021 to stage a bullish reversal to $5 after the Bitcoin halving. 

The Decentralized Finance (DeFi) industry has recorded significant growth in the past few years with the market size estimated to be $46.61 billion in 2024. According to a report, the size is expected to reach $78.47 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 10.98%.

One of the platforms that is contributing immensely to this growth and could dominate the sector soon is XRP Ledger (XRPL). The latest data reaching Crypto News Flash is that XRPL had a remarkable growth in this sector over the weekend with its Automated Market Maker (AMM) pool increasing from 277 to 316.

XRPL DeFi Flourishes: More Than 315 AMM Pools and 2.2 Million XRP Securely Locked in Rapid Expansion

This has led to a significant increase in Ripple’s XRP tokens locked within XRPL AMMs. According to data, there was an impressive surge from 1.8 million to 2.15 million within the period under review. 

More Insight from XRPScan

XRPScan, the leading explorer of the XRP Ledger shows that 221 tokens are currently within the ecosystem in addition to 214 unique tokens, 189 XRP pairs, and 348 active pools. With this explosive growth, the USDC/XRP pair dominates the sector in terms of volume with a total locked of 489,821 XRP. This is followed by XRPS/XRP (292,649 XRP locked) and SOLO/XRP (222,778 XRP). 

The impressive ecosystem growth underscores the growing confidence within the DeFi arm of XRPL as well as its liquidity provisions. The rise in active pools and the locked XRP tokens also indicates a “dynamically expanding ecosystem.” 

Market analysts including Zach Rector have observed that these impressive figures could contribute to a market shift. Analyzing the current surge of locked XRP, Rector observed that the growing use of the asset for diverse utilities, development of bridges, and the strong holders could drastically reduce its liquid supply over the next few years, leading to a supply shock that could be witnessed in the next 5 to 10 years. For context, supply shock is the unexpected or sudden significant change in the available supply of the asset, causing scarcity and driving the token up the price curve.

Can XRP Price Make Any Sense Out of the Ongoing Growth?

At press time, the price of XRP had plunged far below its months-long support level at $0.60. Its current price action shows a negative year-to-date return of 22% with its market dominance reducing to 1.2%. 

Fascinatingly, some analysts believe that the asset could hit $5 after the Bitcoin halving. Their reason stems from the 942% surge recorded in 2021 following the 2020 Bitcoin halving. On April 14, 2021, XRP reached $1.9650 at the helm of its bull run. With this, a popular crypto analyst EGRAG CRYPTO believes that the current market correction is “for buying, not for crying.”

Per his observation, the asset has been caught between bullish sentiment and bearing pressure. In a previous analysis, EGRAG CRYPTO disclosed that the price had formed a “three camel humps”, indicating a potential surge. 

 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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