Ripple’s XRPL value locked plummets by 97%
Ripple’s (CRYPTO:XRP) XRPL recently experienced a dramatic drop in its total value locked (TVL), falling by more than 97%.
This decline occurred at the beginning of August 2024, mirroring the broader volatility in the cryptocurrency market.
XRP, Ripple’s native token, initially suffered a severe crash in value earlier in the month.
However, it subsequently staged a v-shaped recovery, reflecting a rebound in its price.
Despite this recovery, the total value locked within the XRPL protocol witnessed a startling decrease.
Data from DeFiLlama indicates that the TVL in XRPL plummeted from over $12 million to below $300,000 on August 12th, marking a significant 97% drop.
The reasons behind this sharp decline remain unclear, and the TVL has not shown signs of recovery since the drop.
This suggests that the issue is unlikely to be a technical glitch.
The decline in TVL has sparked concerns and discussions on social media about its potential impact on XRP’s price.
While the exact implications are difficult to determine without further details on the TVL drop, it is important to note that XRP’s primary purpose has been to facilitate cross-border transactions rather than to support a decentralised application ecosystem.
Ripple’s XLS-30 Automated Market Maker, introduced in September 2023, aims to expand the network’s capabilities.
However, XRP has not gained significant traction within the decentralised finance (DeFi) community, where leading networks like Ethereum and Solana dominate in terms of TVL.
While XRP’s price has rebounded, the substantial drop in TVL raises questions about the health and future prospects of the XRPL ecosystem.
At the time of reporting, XRP was priced at $0.5967.
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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