Ripple’s CTO, David Schwartz, has recently stirred conversations about the potential impact of Automated Market Makers (AMMs) on the XRP Ledger (XRPL). Despite concerns of an immediate drop in XRP prices, Schwartz maintains a positive view, highlighting the cryptocurrency’s resilience.
Here’s a deeper dive into his interesting take.
Responding to inquiries from Uptownsaul, a notable figure in the XRP community, Schwartz discusses the upcoming launch of a feature aimed at addressing XRP’s price fluctuations. He sees the transformative potential of AMMs, expecting a shift in trading strategies. Additionally, new opportunities, such as arbitrage on the XRPL DEX and participation in continuous auctions, are anticipated.
Schwartz outlines Ripple’s plan to leverage AMMs for institutional payments, capitalizing on the liquidity they offer on the DEX for smoother transactions. While institutional payments weren’t the primary focus, Schwartz views them as a positive side effect.
He reasoned that the XRPL DEX’s trading volume is small compared to centralized exchanges and other platforms. For him, XRPL DEX trading is a “drop in the XRP trading ocean.”
Read More: Ripple News: Major Token Unlock & Whale Movement Shakes Up XRP Price
Admitting hurdles in the initial stages, Schwartz notes that key validators withdrew support due to a discovered bug, slowing down the AMM integration on the XRP Ledger. Despite setbacks, optimism remains, with calls for a revised proposal to address concerns within the XRPL community.
Remarkably, XRP’s price has remained steady, trading at $0.5389 with a modest 1.24% increase in the last month. In contrast, major cryptocurrencies like Bitcoin and Ethereum have seen significant surges. As Ripple prepares to introduce the AMM feature, there’s anticipation that XRP’s stability might persist.
Also Read: Ripple CTO David Schwartz Addresses XRP Price Controversies: What You Need to Know
The amendment aims to introduce liquidity pools to the XRPL, fostering decentralized trading and liquidity provision, akin to leading DeFi platforms. Ripple’s strategic moves and Schwartz’s insights position XRP as a frontrunner in innovative solutions to market challenges.
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