Over 10 million tokens are locked, marking a significant milestone for the XRP Ledger.

Over 10 million tokens are locked, marking a significant milestone for the XRP Ledger.

XRP Ledger

The XRP Ledger (XRPL), a public blockchain intended for the rapid, inexpensive, real-time movement of fiat money, XRP, and other digital assets, has reportedly accomplished a noteworthy milestone, according to CryptoPotato. The fact that more than 10 million XRP coins are locked in its automated market maker (AMM) pools suggests that investor trust is growing. Nevertheless, in the last few hours, this amount has somewhat decreased, with roughly 8.9 million XRP locked among almost 600 AMM pools.

The purpose of AMMs is to supply liquidity to the decentralised exchange of XRPL. Users can switch between each of the two assets in each pool at a defined exchange rate based on a formula. The AMM rewards liquidity providers—those who lock XRP in the pools—with LP tokens, or yield, in exchange for their investment.

Even if XRP’s price has been flat over the last several weeks, more money is being invested in AMM pools, which often indicates that investor confidence is rising. The price of the cryptocurrency has been squeezed inside the present range for a considerable amount of time, suggesting a balance between buyers and sellers, and it looks to be about to make a big move. Since this equilibrium usually breaks quickly, Ripple’s mid-term trend is probably going to depend on which way the breakout occurs.

SOURCE : Binance

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