The total value locked (TVL) in on the XRP Ledger’s recently launched automated market makr (AMMs) has surpassed 7 million $XRP, according to data from DeFi analytics platform DeXfi.

The figure represents a significant increase in just a few weeks,as noted by dUNL validator Vet, who co-founded the non-fungible token (NFT) marketplace xrpcafe on the microblogging platform X (formerly known as Twitter). According to him, more trading pairs with XRP are “contributing a lot to it as well as more inflows in larger pools.”

The locked assets, which include XRP, Sologenic ($SOLO), USD Coin ($USDC), Bitcoin ($BTC), and Coreum ($CORE), are currently valued at around $4 million.  Of the total locked value, the 3.7 million XRP tokens are worth approximately $2 million.

This marks a 66% increase from the 2.2 million XRP reported on April 17, with the SOLO/XRP AMM pool holding the largest share of locked assets, with a TVL of 1.5 million XRP, followed by the USDC/XRP pool.

The new platform allows XRP token holders to trade in a permissionless way using liquidity pools rather than traditional order books. These pools are made of two or more tokens supplied by liquidity providers, and are used to settle trades, with the prices of tokens within them being determined through the use of blockchain oracles.

Those who provide liquidity to the pools will receive revenue every time a trade is conducted using that pool, but the revenue comes with the risk of impermanent loss. Impermanent loss occurs when price fluctuations alter the ratio of the tokens within the pool, meaning token providers could be better off if they simply held the tokens in their wallets.

The loss is considered to be impermanent because the ratio of tokens can be restored, in which case the token provider would be gaining the fees collected over time.

Notably, a popular cryptocurrency analyst has recently stood by their bullish price prediction for XRP, predicting the cryptocurrency’s price will explode to over $200 per token, an over 30,000% rise from its current level.

Per his words, XRP has seen a “full logarithmic follow through” which means XRP “may be more than poised for $200+.” He noted that XRP’s price surged over 100,000% during the 2017-2018 bull run, and suggested that a 33,000% run from its current level “can be more than possible and developing.”

As reported the XRP Ledger has been progressing over time, with the total amount of XRP locked onto the XRP Ledger’s recently launched automated market maker (AMM) platform recently surging from around 330,000 XRP tokens to over 715,000 XRP, worth over $400,000, at a time in which the AMM platform is set to get key bug fix.

The rise in locked XRP also comes shortly after Ripple, a leading provider of enterprise blockchain and crypto solutions, announced its plans to launch a stablecoin pegged 1:1 to the US dollar (USD). The stablecoin would be fully backed by a reserve of US dollar deposits, short-term US government treasuries, and other cash equivalents.

As CryptoGlobe reported, the firm expects the stablecoin market to exceed $2.8 trillion by 2028, and its own stablecoin will be launched both on the XRP Ledger and on Ethereum.

Featured image via Pixabay.