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XRPLedger’s AMM activation will offer XRP holders the opportunity to earn passive income by providing liquidity.
XRP holders that provide liquidity to AMMs could receive a proportionate amount of earnings by sharing risk.
XRP price sustains above the psychologically important $0.60 level on Monday.
XRP price declined in the past week, however the altcoin sustained above the $0.60 level with two catalysts. The upcoming deadline for SEC’s (Securities and Exchange Commission) opening brief in the lawsuit against Ripple has caused a stir among market participants. At the same time, the amendment for an Automated Market Maker (AMM) on the XRPLedger has been approved.
At the time of writing, XRP price is $0.6092.
The decentralized public blockchain, XRPLedger will see the activation of an AMM soon, XRP holders are anticipating a positive impact of the development on the altcoin and the payment remittance firm.
AMMs will likely activate on the XRPLedger by March 22, 20:10 UTC, according to data from XRPscan. Find out more about it here.
The XLS-30D amendment that proposed the activation of an AMM on the ledger, offers XRP holders the opportunity to earn passive income by offering liquidity to pools.
The key feature of the AMM amendment is that the XRPLedger will be smoothly connected to decentralized exchanges.
The liquidity staking pool for XRP holders will offer liquidity providers a proportionate amount of earnings as these individuals or entities share the accompanying exchange risk.
XRP holders that provide liquidity will get liquidity pool tokens in proportion to their deposits and can vote on the AMM’s trading charge.
Stedas, a crypto researcher and influencer on X shared a detailed guide on how XRP holders can earn passive income from liquidity pools.
XRPLedger AMM. Source: @Stedas on X
A key deadline in the SEC v. Ripple lawsuit is fast approaching. The regulator is preparing its opening remedies-related brief for March 22. Developments in the lawsuit have an impact on XRP price since the payment remittance firm is one of the largest public holders of the altcoin.
XRP price is currently trading sideways since it hit its 2024 peak on March 5. The altcoin could correct to the 38.2% Fibonacci retracement of the rally to the 2024 high, at $0.5553. A sweep of this support level is likely as the technical indicators, Moving Average Convergence/Divergence (MACD) and Awesome Oscillator (AO) signal a correction is likely in the altcoin.
XRP/USDT 1-day chart
A daily candlestick close above the 78.6% Fibonacci retracement level at $0.6293 could invalidate the bearish thesis for XRP. The next key resistance is the 2024 peak of $0.6685.
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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