As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself intrigued by the recent developments in the XRP Ledger. The sudden plunge in Total Value Locked (TVL) from $12 million to just over $430,000 is certainly a shift that demands attention.
Over an unexpected shift, the Total Value Locked (TVL) in Decentralized Finance (DeFi) on the XRP Ledger has significantly decreased within a 24-hour span. Specifically, the TVL reduced from approximately $12 million on Wednesday, July 31 to roughly $431,355 at the time of this writing. It’s worth mentioning that such a steep drop in the protocol is quite rare lately.
Investors’ Confidence in XRP Ledger Wobbles
The cause of this unusual trend is presently unknown but it suggests that market participants are pulling out their previously locked tokens. Moreover, this reflects declining confidence in the XRP Ledger.
TVL (Total Value Locked) is a common measure used by investors to gauge a DeFi protocol’s potential for success, as it quantifies the amount of capital that has been committed to the platform.
A large Total Value Locked (TVL) usually signifies high demand and consumers’ readiness to invest substantial funds into the protocol. This could also signal confidence in the protocol, inspiring more users and investors to join. An increase in TVL is essentially a reflection of growing adoption. Conversely, a lower TVL suggests less capital involvement and potentially smaller returns.
Based on the TVL metric, it appears that the price of XRP is struggling in conjunction with a broader market slump. At present, the token is being exchanged at $0.6065, having dropped by 6.48% over the past day according to CoinMarketCap data. Not only has its value decreased, but its trading volume has also dipped by 32.31%, currently standing at $2.05 billion. If this downward trend continues, XRP’s status as the 7th most actively traded cryptocurrency may be at risk.
Although the on-chain indicators show a bearish trend, the decrease in Total Value Locked (TVL) for XRPL doesn’t align with the increased interest or usage the protocol has been experiencing lately.
XRPL Welcomes Multiple Projects
In the course of a new month, Ripple revealed plans to integrate US Treasury bills onto the XRP Ledger, teaming up with tokenization platform OpenEden. Previously, over one billion dollars worth of these short-term U.S. government-backed securities were already available in their digital form on public blockchain networks such as Polygon, Ethereum, and Stellar.
In a similar vein, Ripple has extended its partnership with Archax, a UK Financial Conduct Authority (FCA)-regulated digital asset exchange. This collaboration aims to facilitate the addition of more institutional investors who are interested in tokenizing real-world assets on the XRP Ledger (XRPL).
“Markus Infanger, from RippleX, expressed enthusiasm about Archax’s goal to boost the use of blockchain and digital assets among financial institutions. He also highlighted how this development strengthens XRPL’s reputation as a top choice for tokenization in the Real-World Asset (RWA) sector.”
Just recently, SBI Holdings, a financial service provider based in Tokyo, unveiled its Non-fungible token (NFT) services on the XRP Ledger. Immediately following this announcement, users could access the NFTs affectionately referred to as “Myaku N!” through the EXPO2025 Digital Wallet. This swift availability was due to the commencement of minting World Expo 2025 NFTs on the XRPL.
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2024-08-01 15:38