DeFi
XRP Just Hit 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, a built-in central limit order book (CLOB) manages all XRPL transactions for fungible tokens. This CLOB has been part of the XRPL since its inception and offers the benefits of reduced trust assumptions and centralized liquidity, as opposed to the vulnerabilities inherent in smart contracts.
In addition to the existing CLOB, an automated market maker (AMM) was voted into the protocol in Q1 2024, as specified by XLS-30.
The growth in the number of XRP locked in AMM pools to 10 million XRP reflects strong engagement with the XRPL infrastructure.
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.
In a similar vein, digital asset investment products saw outflows of $584 million for the second consecutive week, a reduction of $1.2 billion. Bitcoin was the center of attention, with outflows of $630 million.
In contrast, XRP saw $0.7 million in inflows, indicating that investors viewed the altcoin market slowdown as a buying opportunity.
At the time of writing, XRP was down 1.47% over the past 24 hours to $0.476, reflecting the general market slowdown triggered in part by macroeconomic uncertainty and fears of a additional selling pressure following the latest Mt. Gox announcement.