XRPL DeFi experiences a surge in growth, with its AMM pool expanding from 277 to 316 and the locked XRP tokens increasing from 1.8 million to 2.15 million. A market analyst predicts that XRP could replicate its 942% surge in 2021 and reach a bullish reversal to $5 after the Bitcoin halving.
The Decentralized Finance (DeFi) industry has witnessed significant growth in recent years, with the market size projected to reach $78.47 billion by 2029, at a Compound Annual Growth Rate (CAGR) of 10.98%. One platform that is playing a major role in this growth and has the potential to dominate the sector is XRP Ledger (XRPL). Recent data reveals that XRPL experienced remarkable growth over the weekend, with its Automated Market Maker (AMM) pool increasing from 277 to 316. Consequently, the number of locked XRP tokens within XRPL AMMs surged from 1.8 million to 2.15 million.
XRPScan, the leading explorer of the XRP Ledger, provides further insights into this growth. Currently, there are 221 tokens within the XRPL ecosystem, along with 214 unique tokens, 189 XRP pairs, and 348 active pools. Among these, the USDC/XRP pair dominates in terms of volume, with a total of 489,821 XRP locked. This is followed by XRPS/XRP (292,649 XRP locked) and SOLO/XRP (222,778 XRP locked). The growth of the ecosystem highlights the increasing confidence in XRPL’s DeFi arm and its liquidity provisions. The rise in active pools and locked XRP tokens indicates an expanding ecosystem.
Market analysts, including Zach Rector, suggest that these impressive figures could lead to a market shift. Rector analyzes the current surge in locked XRP and notes that the growing use of the asset for various purposes, the development of bridges, and the strong holders could significantly reduce its liquid supply in the coming years. This could result in a supply shock, causing scarcity and driving up the token’s price curve, which may be witnessed in the next 5 to 10 years.
Despite the ongoing growth, the price of XRP has fallen below its long-standing support level at $0.60. Its current price action reflects a negative year-to-date return of 22%, with its market dominance decreasing to 1.2%. However, some analysts believe that the asset could reach $5 after the Bitcoin halving, drawing inspiration from the 942% surge it experienced in 2021 following the 2020 Bitcoin halving. On April 14, 2021, XRP reached $1.9650 during its bull run. Based on this, popular crypto analyst EGRAG CRYPTO suggests that the current market correction is an opportunity to buy rather than despair.
EGRAG CRYPTO observes that XRP is caught between bullish sentiment and bearish pressure. In a previous analysis, EGRAG CRYPTO noted the formation of a “three camel humps,” indicating the potential for a surge in price.
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