Will XRPL AMM just cater to XRP? Ripple’s CTO has this to say

As Ripple’s XRP ledger (XRPL) Automated Market Maker (AMM) prepares for its upcoming launch within the next three days, the XRPL community finds itself immersed in discussions about its capabilities and potential. Among the many questions that are circulating right now, one pertinent Q is – Will the AMM exclusively cater to XRP pairs?

To address such ongoing concerns, Ripple CTO Davis Schwartz took to X and noted, 

“AMMs can be created with any two assets supported by the XRP Ledger.”

XRP holders and AMM

Recently, The Crypto Basic highlighted potential gains for XRP holders through AMM liquidity pools, but a discussion about other assets’ inclusion was lacking. Countering predominant XRP-centric reports, Schwartz assured everyone that the AMM would support various cryptocurrencies. 

“I suspect AMMs where one of those assets is XRP will be the most popular, but that’s just my expectation.”

This spectrum of asset pairs could include CORE/XRP, FURY/USD, and CSC/RPR, reflecting the platform’s inclusivity.

Despite this adaptability, Schwartz anticipates XRP’s dominance in AMM pools, citing its network prominence and role as the primary gas token. While participants can trade various assets, XRP’s prevalence can be expected here.

Additionally, Schwartz refuted the speculation about Ripple utilizing escrowed XRP to bolster AMM liquidity due to potential selling pressure.

What lies ahead? 

Scheduled for 22 March, XRPL AMM’s implementation will follow the validators’ consensus on 15 March, marking a pivotal moment for the network. Pivotal because many are anticipating what its impact will be on XRP’s price on the charts. 

On-chain analyst Mr. Huber is one of them. Using the example of previous network upgrades, he noted, 

“XRP has as much potential in the financial system as Deuterium has in nuclear fusion.”

As XRPL’s AMM feature approaches launch, community stakeholders will be vigilantly watching and appreciating its expanded asset support as a sign of inclusivity. With the rollout imminent, the focus will shift to anticipating market changes and XRP’s pivotal role within the AMM ecosystem.