XRP has witnessed a substantial shift in its on-chain transactions, particularly in relation to the Automated Market Maker (AMM), according to an analysis by Wenry at CryptoQuant. The analysis reveals that other indicators are also on the rise, including liquidity deposits in the AMM ecosystem, despite a recent decline in XRP ledger AMMbids. These changes suggest a growing confidence in existing liquidity pools and should therefore encourage market participants to get involved.
Analysis of XRP Ledger On-Chain Transactions
“XRPL has experienced significant growth in AMM liquidity, with notable increases in AMMDeposit and AMMCreate. Despite a decrease in AMMBid, the rise in liquidity deposits indicates confidence in the current pools.” – By @WenrySeoul
There has been a surge in XRP AMM Deposits
The analysis highlights the significant growth of AMMDeposits, which saw an impressive increase of 62.35%. Deposits into liquidity pools rose from 14,971 to 24,306, demonstrating a notable boost in confidence towards the XRPL’s AMM structure. This development is a positive sign for trading volumes, especially considering the overall market sentiment and the decline in AMMBid activity.
The AMMBid decreased by 18.82% from 722 to 624. However, the overall liquidity level remains relatively high, suggesting that participants may increase their liquidity deposits as the market expands.
On-Chain Activity Analysis
A broader analysis of the XRP Ledger conducted between September 15 and October 15, 2023, revealed a slight decrease in other transactions. For instance, Token on-chain activity declined by 6.83%, from 6.88 million to 6.41 million trades, while token burn was reduced by over 50%. Similarly, the market values of NFT products experienced significant downtrends. However, the analysis indicated a slight increase in what the company refers to as “Active Accounts,” which grew by 14.91% to surpass 10,887.
NFT Sector Contracts but Aims for Stability
Certain parameters related to NFTs on the XRP ledger displayed contraction. NFTokenAcceptOffers decreased by over 30%, and NFTokenCreateOffers declined by more than 38%. Nonetheless, according to Wenry’s analysis, the NFT market is stabilizing. This period could be viewed as a correction rather than a decline, as the volume of NFTokenCancelOffer remains consistent.
In summary, the XRP Ledger remains stable and resilient, with the AMM sector driving the liquidity aspect. The increasing AMMDeposits indicate that while trading in other areas of the ecosystem, such as NFTs and tokens, may be challenging, there is still confidence in the XRP ledger’s ability to deliver value. Wenry’s report suggests that this may be a sign of increased market activity and preparation for an upcoming upward trend.