XRPL DeFi is experiencing a significant boom, as its Automated Market Maker (AMM) pool has seen impressive growth from 277 to 316. This growth has resulted in an increase in locked XRP tokens from 1.8 million to 2.15 million.
Analysts are predicting that XRP could replicate its 942% run in 2021 and stage a bullish reversal to $5 following the Bitcoin halving.
The DeFi industry has been growing rapidly over the past few years, with the market size estimated to reach $46.61 billion in 2024. By 2029, it is expected to reach $78.47 billion at a Compound Annual Growth Rate (CAGR) of 10.98%.
One platform that is making significant contributions to this growth and has the potential to dominate the sector is XRP Ledger (XRPL). Recent data shows that XRPL has experienced remarkable growth in the AMM pool, with an increase from 277 to 316.
As a result, there has been a significant increase in the number of locked XRP tokens within XRPL AMMs. Data indicates that the number has surged from 1.8 million to 2.15 million.
XRPScan, the leading explorer of the XRP Ledger, provides further insight into the ecosystem. It reveals that there are currently 221 tokens within the ecosystem, along with 214 unique tokens, 189 XRP pairs, and 348 active pools. The USDC/XRP pair dominates the sector 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).
The impressive growth of the ecosystem highlights the growing confidence in XRPL’s DeFi arm and its liquidity provisions. The increase in active pools and locked XRP tokens also signifies a dynamically expanding ecosystem.
Market analysts, including Zach Rector, believe that these impressive figures could lead to a market shift. Rector suggests that the growing use of XRP for various utilities, the development of bridges, and strong holders could result in a reduction of its liquid supply over the next few years. This could potentially lead to a supply shock in the next 5 to 10 years, driving up the price of the token.
Despite the ongoing growth, the price of XRP has fallen below its support level at $0.60. It currently has a negative year-to-date return of 22% and a market dominance of 1.2%. However, some analysts believe that the asset could reach $5 after the Bitcoin halving. They base this prediction on the 942% surge recorded in 2021 following the 2020 Bitcoin halving. In April 2021, XRP reached $1.9650 during its bull run. This has led popular crypto analyst EGRAG CRYPTO to suggest that the current market correction is an opportunity for buying rather than crying.
In summary, XRPL DeFi is experiencing significant growth, with its AMM pool and locked XRP tokens increasing. Analysts predict a potential market shift and believe that XRP could reach $5 after the Bitcoin halving. However, the current price of XRP remains below its support level.