11.7 Million XRP Locked as Key Metric Declines

Amid the mixed price actions witnessed across the broad crypto market, XRP has not only stalled in price, its DeFi growth appears to be declining.

According to data from XRPSCAN, the amount of XRP locked across all XRPL automated market maker (AMM) pools has reduced to 11,729,984 XRP as of August 28.

The data shows that the XRPL AMM liquidity has declined to levels last reached in November 2024 as the third-largest cryptocurrency by market capitalization continues to experience volatile price movements.

XRPL AMM hits bare lows

With 11,729,984.20 XRP currently pooled in AMM contracts of the XRP ledger, it appears that weakening investor confidence has spurred a retracement in locked liquidity for XRP despite earlier growth this year. The metric had surged to over 14 million about four months ago.

Following the decline in its DeFi activities, the total XRP trading pairs registered on the ledger as of writing stand at 19,953. With the decline in XRPL locked liquidity nearly reaching a one-year low, only a few pools have been added to existing ones, with the total active pools reaching 22,053 on August 28.

Notably, the downturn in the amount of XRP locked on the AMM pools suggests fading enthusiasm across the XRP community as on-chain metrics suggest momentum is fading. Thus, the negative trend suggests that some liquidity providers on XRPL are increasingly withdrawing capital amid shifting sentiments caused by prolonged market uncertainty.

This contraction in AMM liquidity coincides with mixed price action for XRP, which has struggled to sustain upward momentum in recent sessions. The token has struggled to maintain the $3 support level amid recurring price corrections.

XRPL TVL stable

Despite the decline in locked liquidity on the ledger, data from DefiLlama shows that the total value locked (TVL) across XRPL stands at $99.47 million on August 28, showing zero increase or decline in the last 24 hours.

While this suggests dormant DeFi activities as XRP liquidity providers are increasingly taking caution, the data further shows that the XRPL DEX remains the dominant protocol, with nearly $80 million TVL, though it has seen a 1.65% weekly decline.

However, it is important to note that stablecoin liquidity on XRPL has surged slightly higher, with the stablecoin market cap increasing 2.20% over the past week to $168.08 million.

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