XRP Ledger’s Decentralized Exchange Sees Total Value Locked Soar Over 7.5 Million $XRP

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Approximately $7 million worth of XRP is currently secured in the automated market makers (AMMs) that have recently been introduced on the XRP Ledger, as indicated by statistics from the decentralized finance (DeFi) analysis tool DeXfi.

Vet, a dUNL validator and co-founder of the NFT marketplace xrpcafe on the X platform (previously known as Twitter), pointed out that the figure shows a substantial growth within a few weeks. He attributed this surge to an influx of new trading pairs involving XRP and increased contributions to larger pools.

Over the past few days, we neglected to give our full focus, but our Total Value Locked (TVL) in the XRPL Automated Market Maker (AMM) for XRP has been increasing. We’ve moved from under 5 million XRP to approaching ten million XRP in TVL!— Vet 🏴‍☠️ (@Vet_X0) April 24, 2024

Approximately $4 million is the current value of the assets I’m about to mention, which are now secured. Among these are XRP with a market worth of roughly $2 million, amounting to around 3.7 million tokens; Sologenic ($SOLO), USD Coin ($USDC), Bitcoin ($BTC), and Coreum ($CORE) with combined values making up the remaining balance.

The amount of XRP in the automated market makers (AMMs) has grown by approximately two-thirds since the reported 2.2 million XRP on April 17. The largest portion of these locked assets is found in the SOLO/XRP pool, which contains a total value locked (TVL) of around 1.5 million XRP. The USDC/XRP pool comes second with a TVL of over one million XRP.

With the introduction of the latest trading platform, XRP token owners can now execute trades in a decentralized manner via liquidity pools instead of the conventional order books. Liquidity pools consist of two or more tokens contributed by providers for facilitating transactions. These pools function as intermediaries to complete trades, with their token prices being regulated by blockchain-based oracles.

Providing liquidity to pools brings the benefit of earning income each time a trade is executed using your pool. However, this income comes with the potential downside of impermanent loss. Impermanent loss happens when price changes affect the token proportions within the pool, which might result in token providers missing out on greater gains if they had just kept their tokens in their wallets instead.

In simpler terms, the loss isn’t permanent since the number of tokens can be replenished, allowing the token issuer to earn back the fees paid over time.

A well-known crypto expert has reaffirmed their belief that XRP‘s price will significantly increase, reaching over $200 per token – a jump representing more than 30,000% from its present value.

According to his statement, XRP has experienced a “strong and consistent increase” which could indicate that XRP is “well on its way to surpassing $200.” He pointed out that XRP’s price skyrocketed over 100,000% during the bull market of 2017-2018, implying that a surge of around 33,000% from its current value “is not only plausible but also in progress.”

The XRP Ledger’s automated market maker (AMM) platform has seen significant growth. Initially holding approximately 330,000 XRP tokens, this number has more than doubled to over 715,000 XRP tokens, equating to over $400,000, as the AMM undergoes crucial bug fixes.

A significant increase in locked XRP occurred not long after Ripple, a major player in enterprise blockchain and cryptocurrency services, unveiled its intention to introduce a stablecoin that is equivalent to the US dollar (USD). This new stablecoin would be backed by a secure reserve comprising of US dollar deposits, short-term U.S. government securities, and other liquid assets.

According to a report from CryptoGlobe, the company anticipates that the total value of stablecoins in circulation will surpass $2.8 trillion by the year 2028. Notably, their own stablecoin is planned for release on both the XRP Ledger and Ethereum platforms.

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2024-04-25 04:38