u.today
Automated Market Makers (AMMs) have experienced an "extreme" increase in volume.
On Oct. 27, XRPL recorded a total of $3.9 million in AMM volume, which is a new record high.
The massive spike in volume was caused by a flood of meme cryptocurrencies.
A slew of micro-cap coins recently came out on XRPL following the launch of First Ledger, which is a "meme coin factory" that is similar to Solana's extremely successful Pump.fun platform. The vast majority of them are basically worthless.
As of now, the DROP meme coin is the lead with a market cap of just $6.92 million. BEAR and FLIPPY are in second and third places with $3.66 million and $1.45 million, respectively.
For comparison, Dogecoin, the largest meme cryptocurrency, is worth a whopping $20.2 billion.
It is unclear whether this meme coin trend will persist, but it has certainly injected some life into the XRP Ledger.
As reported by U.Today, David Schwartz, chief technology officer at Ripple, recently stated that the company could have made "a lot of money" by venturing into meme coins or ICOs. However, there was no need for additional funding, which is why the company never opted for this strategy.
The top AMMs by liquidity
According to CryptoQuant, XRPL recently experienced substantial growth in AMM liquidity. This was largely attributed to an increase in liquidity deposits.
MAG, the native token of the Magnetic project, has the number one AMM pool on XPMarket.
Notably, DROP/XRP is among the largest AMMs on the XRP Ledger.