DeFi
XRP Just Hit a Major Defi Milestone: Details — TradingView News
XRP, the seventh-largest cryptocurrency, recently reached a major milestone in the decentralized finance (DeFi) market. According to XRPscan, a leading XRP Ledger explorer, the total amount of XRP pooled in the XRPL Automated Market Maker (AMM) has surpassed 10 million XRP. This milestone highlights the growing adoption and usage of XRP in DeFi.
Automated market makers (AMMs) are a type of decentralized exchange mechanism that uses liquidity pools to price assets algorithmically rather than creating bids based on predefined specifications. Liquidity pools allow holders to earn a portion of trading fees by offering their tokens as liquidity.
In the case of the XRP Ledger, an integrated central limit order book (CLOB) manages all XRPL transactions for fungible tokens. This CLOB has been part of XRPL since its inception and offers the benefits of fewer trust assumptions and centralized liquidity, as opposed to the inherent vulnerabilities of smart contracts.
In addition to the existing CLOB, an Automated Market Maker (AMM) has been voted into the protocol in Q1 2024, as specified by the XLS-30 standard.
The growth in the number of XRP locked in AMM pools to 10 million XRP reflects a strong commitment to the infrastructure of XRPL.
Total XRP pooled in XRPL AMM has surpassed 10 million XRP: https://t.co/RR0LsMcvEG pic.twitter.com/cb6CRZnNpx— XRPScan (@xrpscan) June 24, 2024
As the total XRP pooled in the XRPL AMM increases, it could attract even more participants to the XRP Ledger. Increased liquidity and user participation can lead to new innovations, new financial products, and a more robust DeFi environment.
On a related note, digital asset investment products saw outflows of $584 million for the second week in a row, a reduction of $1.2 billion. Bitcoin was the center of attention, with $630 million in outflows.
In contrast, XRP saw inflows of $0.7 million, indicating that investors viewed the altcoin market downturn as a buying opportunity.
At the time of writing, XRP was down 1.47% over the past 24 hours at $0.476, reflecting the broader market slowdown, triggered in part by macroeconomic uncertainty and fears of additional selling pressure following the latest Mt. Gox announcement.