The total value locked (TVL) in the XRP Ledger automated market maker (AMM) has experienced a consistent upward trend, surpassing $7.7 million. This growth coincides with a positive long-term outlook for the market.
The AMM platform supports various cryptocurrencies, including USDC, Bitcoin (BTC), Sologenic (SOLO), MAG, and USD, in addition to XRP.
The Ripple network has been witnessing remarkable expansion, driven by the growth of the XRP Ledger ecosystem. Recent data reveals that the TVL of the AMM has surged by 51% in just over two weeks, reaching over 15 million XRP tokens.
Notably, the TVL increased by approximately 1.3 million XRP tokens in just one day. This follows a previous increase of 1.1 million tokens in three days, indicating a rapidly growing interest in the market.
The total TVL now stands at 15.6 million XRP, equivalent to $7.7 million, locked in various XRPL AMM pools. It is important to note that this figure represents the total value of different cryptocurrencies locked within the XRPL AMMs, not just XRP. The pool also includes USDC, Bitcoin (BTC), Sologenic (SOLO), MAG, and USD. XRP tokens specifically account for around 7.83 million within the AMM pools, as per data from XRP explorers.
The significant growth within a short period suggests a renewed interest in the market, although the main driving force behind this surge remains unclear. Neil Hartner, a software engineer at Ripple Payments, commented on this growth, highlighting that the recent increase in TVL is primarily attributable to the Magnetic X (MAG) pool. This particular pool currently holds a TVL of approximately 4.8 million XRP, reflecting a 35% increase from the previous day.
Furthermore, the MAG pool offers an Annual Percentage Yield (APY) of 9.58%, slightly lower than its closest competitor, the XGO pool, which has a TVL of 1.8 million XRP.
Despite the impressive growth in TVL, the price of XRP continues to face challenges. At the time of writing, XRP is being traded at $0.4783, experiencing a 2% decline over the weekend.
In an effort to promote transparency, the XRP community recently revealed key details regarding the supply and distribution of XRP as outlined by Ripple in 2014. The document disclosed that the company intends to retain 25 billion XRP (equivalent to 25% of the total supply) to fund operations and generate profit. The remaining 75 billion XRP will be distributed to the market to incentivize participants, such as market makers, consumers, and gateways, to utilize the XRP Ledger and ecosystem dApps.
The ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) continues to heavily influence the trajectory of XRP prices. Legal experts are increasingly predicting a favorable outcome for Ripple, and recent developments in the case support this view.
On June 20, Ripple Labs Inc. achieved a significant victory in a federal class action lawsuit, as Judge Phyllis J. Hamilton granted summary judgment to dismiss both federal and state class claims that XRP was sold as an unregistered security.