Key Details Shared as Ripple’s CTO Develops Trading Bot Using XRP Ledger’s AMM Algorithm

XRPL’s Automated Market Maker (AMM) is currently not generating significant profits due to high trading fees across various blockchains, according to David Schwartz. However, the XRP community will soon have access to the improved liquidity offered by XRPL’s AMM, enabling seamless trading. Ripple Labs-backed XRPL is adopting an AMM similar to Uniswap and Pancakeswap, with implementation taking place on Friday after overwhelming validator consensus. However, the implementation has faced challenges, including technical and regulatory issues, as Ripple fights to prevent XRP from being classified as a security in an ongoing lawsuit. Ripple CTO David Schwartz has successfully implemented a trading bot using a similar algorithm to XRPL’s AMM, which has demonstrated its potential on centralized exchanges with various pairs, including Solana and Ethereum. However, Schwartz noted that the trading bot is currently limited to approximately 11% profit per year due to high transaction fees on certain blockchains. The Solana network, for example, has experienced a backlog of unprocessed transactions due to the popularity of meme coins. Despite the limitations, the XRPL’s AMM is expected to be highly beneficial for developers who can build trading bots to take advantage of lower transaction fees for XRP and other assets offered by different liquidity pools. Furthermore, the increased cryptocurrency trading volume has led to greater volatility, which can result in higher profits. Trading bots benefit from executing multiple micro trades, reducing the risk of holding a single trade for too long and potentially missing out on other profitable opportunities. The launch of XRPL’s AMM is anticipated to have a significant impact on the price of XRP, as traders and bots gain access to deep liquidity. Coupled with the expected settlement of the SEC vs Ripple case, the XRP price is poised for exponential growth in the coming quarters. Since February, XRP has gained around 20% and is currently trading at approximately $0.629, with a fully diluted valuation of approximately $62.9 billion.