XRP Ledger On-Chain Insights: Liquidity Spikes as AMMDeposits Outpace AMMBids

XRP has seen a significant change in its on-chain transactions, especially based on the AMM (Automated Market Maker), as reported by Wenry in CryptoQuant analysis. The analysis shows that other parameters are also rising, along with liquidity deposits in the AMM ecosystem, despite a decline in XRP ledger AMMbids in recent days. Such changes indicate enhanced confidence in the existing liquidity pools and, therefore, should elicit the participation of market players.

XRP Ledger On-Chain Transaction Analysis

“XRPL saw significant growth in AMM liquidity, with strong increases in AMMDeposit and AMMCreate. Despite a drop in AMMBid, the rise in liquidity deposits indicates confidence in existing pools.” – By @WenrySeoul

Link 👇… pic.twitter.com/pq9UU0dS76

— CryptoQuant.com (@cryptoquant_com) October 22, 2024

Spike in XRP AMM Deposits

The key emphasis of the recent analysis is the growth of AMMDeposits, which rose by a spectacular 62.35%. Deposits into liquidity pools increased from 14,971 to 24,306, a notable increase in confidence toward XRPL’s AMM structure. This is a positive signal in the direction of volumes when we consider the overall market sentiment and the decline in AMMBid activity.

The AMMBid was decreased by 18.82% from 722 to 624. However, the general level of liquidity is relatively high, so it may mean that participants will be doubling down on liquidity deposits as the market grows.

On-Chain Activity Analysis

A more general analysis of the XRP Ledger performed between September 15 and October 15, 2023, showed that other transactions also slightly decreased. For instance, Token on-chain activity declined by 6.83%, from 6.88 million to 6.41 million in trades, and token burn was slashed by over 50%. Likewise, market values for NFT products also contained strong downtrends. Still, the analysis pointed to a slight increase in what the company called ‘Active Accounts,’ which expanded to more than 10,887, an increase of 14.91%.

NFT Sector Shrinks but Looks for Stability

Some of the NFT-connected parameters on the XRP ledger demonstrated the shrinking NFTokenAcceptOffers decreased by more than 30%, and NFTokenCreateOffers declined by more than 38%. However, according to Wenry’s analysis, the NFT market is settling. Perhaps this period is viewed as a correction rather than a decline since the volume of NFTokenCancelOffer is considered constant.

In summary, the XRP Ledger remains stable and still buoyant, with the AMM sector driving the liquidity sector. This increasing AMMDeposits indicates that while experiences in other aspects of the ecosystem, such as NFTs and tokens, trading may be cumbersome, there is still confidence in the ability of the XRP ledger to deliver value. Wenry’s report notes that this may simply be evidence of more market activity and getting ready for an upward trend in the near future.

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