- 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.
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.
