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XRP AMM Liquidity Hits Near One-Year Lows as XRPL TVL Remains Stable, Data Suggests

XRP AMM Liquidity Hits Near One-Year Lows as XRPL TVL Remains Stable, Data Suggests

CoinotagCoinotag2025/08/29 03:45
By:Marisol Navaro

  • XRPL AMM locked liquidity: 11,729,984 XRP (Aug 28)

  • XRPL TVL holds at $99.47 million with the XRPL DEX near $80M TVL

  • Stablecoin market cap on XRPL up 2.20% week-over-week to $168.08M

XRPL AMM liquidity falls to 11.73M XRP while XRPL TVL holds at $99.47M — read COINOTAG’s concise analysis and next steps for traders.

What caused the decline in XRPL AMM liquidity?

XRPL AMM liquidity dropped to 11,729,984 XRP as liquidity providers have withdrawn capital amid volatile price action and fading momentum. On-chain data from XRPSCAN shows the AMM pool total retraced from over 14M XRP four months ago, reflecting cautious positioning by market participants.

How much has XRPL AMM liquidity changed recently?

Locked liquidity on XRPL AMM pools fell to levels not seen since November 2024. The current 11.73M XRP represents a material retracement from an earlier peak exceeding 14M XRP. This shift corresponds with reduced new pool additions and higher withdrawal activity from existing pools.

How stable is XRPL TVL and which protocols lead?

XRPL TVL remains steady at $99.47 million as of August 28, according to DefiLlama data. The XRPL DEX accounts for nearly $80 million of that TVL, though it recorded a 1.65% weekly decline, indicating concentrated value but muted growth across the ledger.

XRP AMM Liquidity Hits Near One-Year Lows as XRPL TVL Remains Stable, Data Suggests image 0 Source: DefiLlama (image retained in original position)

Why is stablecoin liquidity rising on XRPL?

Stablecoin market cap on XRPL increased by 2.20% over the past week to $168.08 million. This growth suggests that some capital is migrating into lower-volatility assets on the ledger, even as AMM participation softens, which can preserve TVL while AMM-specific metrics decline.

What on-chain metrics reveal about XRPL market sentiment?

On-chain indicators show weaker AMM engagement: active pools total 22,053 and trading pairs are about 19,953. These counts imply that while the ecosystem retains breadth, depth in AMM liquidity is contracting and market-makers are trimming exposure amid price uncertainty.

How should traders interpret these trends?

Traders should view falling AMM liquidity as a signal of thinner order books on AMM channels and potential for higher slippage. The stable TVL means overall protocol value is intact, but concentrated liquidity could increase execution risk on larger trades.

Frequently Asked Questions

What is the current amount of XRP locked in XRPL AMMs?

As of August 28, XRPL AMMs hold 11,729,984 XRP locked in liquidity pools, down from a peak above 14 million XRP earlier this year, per XRPSCAN on-chain figures.

Does XRPL TVL still show growth?

XRPL TVL is unchanged at $99.47 million in the last 24 hours, indicating short-term stability but limited growth momentum across the ledger’s DeFi ecosystem.

Are liquidity providers leaving XRPL entirely?

Not entirely; data shows reduced AMM commitments but persistent TVL and rising stablecoin balances, suggesting reallocation rather than wholesale exit.

Key Takeaways

  • AMM liquidity contraction: Locked XRPL AMM liquidity fell to 11.73M XRP, indicating lower AMM participation.
  • Stable overall value: XRPL TVL holds at $99.47M, led by the XRPL DEX near $80M.
  • Shift to stablecoins: Stablecoin market cap rose 2.20% to $168.08M, signaling risk-off allocations.

Conclusion

XRPL AMM liquidity decline to 11.73M XRP highlights cooling DeFi activity on the ledger, even as XRPL TVL remains steady at $99.47M. Market participants should monitor on-chain metrics from XRPSCAN and DefiLlama and adjust exposure for potential slippage and concentrated liquidity risks. COINOTAG will continue tracking developments and reporting data-driven updates.








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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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