XRP has experienced a significant shift in its on-chain transactions, particularly in relation to the Automated Market Maker (AMM), according to a CryptoQuant analysis by Wenry. The analysis reveals that there are other indicators on the rise, including liquidity deposits in the AMM ecosystem, despite a recent decrease in XRP ledger AMMbids. These changes suggest an increase in confidence in the existing liquidity pools, which should encourage market participants to get involved.
Analysis of XRP Ledger On-Chain Transactions
Wenry’s analysis highlights the substantial growth in AMM liquidity, with notable increases in both AMMDeposit and AMMCreate. Although there has been a decline in AMMBid, the rise in liquidity deposits demonstrates confidence in the current pools. The growth of AMMDeposits, in particular, has been remarkable, increasing by 62.35%. The number of deposits into liquidity pools has risen from 14,971 to 24,306, indicating a strong belief in XRPL’s AMM structure. This positive signal regarding volumes is especially significant given the overall market sentiment and the decrease in AMMBid activity.
Notable Spike in XRP AMM Deposits
The focal point of the recent analysis is the considerable growth in AMMDeposits. The deposits into liquidity pools have experienced a remarkable 62.35% increase. This surge in confidence towards XRPL’s AMM structure is evident in the rise from 14,971 to 24,306 deposits. Despite the decrease in AMMBid, the overall liquidity level remains relatively high. This may suggest that market participants will further increase their liquidity deposits as the market continues to grow.
Analysis of On-Chain Activity
A broader analysis of the XRP Ledger, conducted between September 15 and October 15, 2023, reveals a slight decrease in other transactions. For instance, Token on-chain activity declined by 6.83%, from 6.88 million to 6.41 million in trades. Additionally, token burn experienced a significant decrease of over 50%. The market values of NFT products also displayed a strong downtrend. However, the analysis did note a slight increase in what the company refers to as “Active Accounts,” which grew by 14.91% to a total of more than 10,887.
Shrinking NFT Sector Seeks Stability
Within the NFT sector connected to the XRP Ledger, certain parameters demonstrated a decrease. NFTokenAcceptOffers decreased by over 30%, while NFTokenCreateOffers declined by more than 38%. However, Wenry’s analysis suggests that the NFT market is stabilizing. It is possible that this period is viewed as a correction rather than a decline, as the volume of NFTokenCancelOffer remains relatively constant.
In conclusion, the XRP Ledger remains stable and resilient, with the AMM sector playing a crucial role in driving liquidity. The significant increase in AMMDeposits indicates that while other aspects of the ecosystem, such as NFTs and token trading, may face challenges, there is still confidence in the XRP Ledger’s ability to provide value. Wenry’s report suggests that this may simply be evidence of increased market activity and preparation for an upcoming upward trend.