Among the mixed price actions seen across the wide crypto market, XRP appears to have not only stagnated in price, but its obligation growth appears to be declining.
According to XRPSCAN data, as of August 28, the amount of XRP locked in all XRPL Automatic Market Maker (AMM) pools had dropped to 11,729,984 XRP.
Data show that XRPL AMM liquidity has decreased to the level reached in November 2024.
XRPL AMM hits naked cyclone
Currently, 11,729,984.20 XRP is pooled in XRP ledger AMM contracts, which weakens investor reliability, and appears to have been drawn to XRP’s locked liquidity despite early growth this year. Metrics had skyrocketed to over 14 million people about four months ago.
The total of XRP trading pairs registered in the ledger at 19,953 lighting stands following a decrease in Defi activity. The decline in XRPL locked liquidity is approaching its highest low in a year, with only a few pools added to the existing pool, reaching 22,053 total active pools on August 28th.
In particular, the recession in the amount of XRP locked in the AMM pool suggests a decline in competition, and thus suggests a zeal to decline across the XRP community. Thus, negative trends suggest that some liquidity providers in XRPL are increasingly retracting capital amid changing feelings caused by long-term market uncertainty.
This shrinkage in AMM fluidity is consistent with XRP’s mixed price action. This has been struggling to maintain upward momentum in recent sessions. The token struggles to maintain a $3 support level during repeated price corrections.
XRPL TVL Stability
Despite the decline in locked liquidity in ledgers, Defillama’s data shows that the total locked value (TVL) across XRPL was $99.47 million on August 28th, indicating a zero increase or decrease over the past 24 hours.
This suggests dormant disorder activity as XRP liquidity providers are increasingly paying attention, but data further suggests that XRPL DEX remains the dominant protocol with nearly $80 million in TVL, despite a weekly decline of 1.65%.
However, it is important to note that XRPL’s stubcoin liquidity has skyrocketed, with Stablecoin’s market capitalization rising 2.20% over the past week to $168 million.