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HomeCrypto NewsMarketRipple CTO Suggests Upcoming XRPL AMM Could Contribute to XRP Buying Pressure

Ripple CTO Suggests Upcoming XRPL AMM Could Contribute to XRP Buying Pressure


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Ripple CTO David Schwartz has suggested that the upcoming XRP Ledger (XRPL) AMM could contribute to buying pressure on XRP.

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Ripple’s Chief Technology Officer (CTO), David Schwartz, recently engaged in an insightful discussion on X, highlighting how the upcoming XRPL Automated Market Maker (AMM) could impact the price of XRP. 

Notably, a concerned XRP community member asked whether the launch of the AMM, where XRP holders will pool their assets, might lead to a significant drop in XRP’s value due to increased selling pressure.

In response, Schwartz acknowledged the possibility, stating that if the AMM primarily attracts XRP holders, it could initially create a surge in selling pressure. 

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However, he suggested that this selling pressure might be offset by a wave of individuals moving in the opposite direction, potentially resulting in an equilibrium or net buying pressure.

This statement captured the attention of the broader community, as it implies that Schwartz anticipates a substantial influx of buyers once the AMM goes live. The prospect of increased buying interest could positively impact XRP.

One community influencer expressed excitement over the idea, characterizing Schwartz’s remarks as a “hot take.” They pointed out that the Ripple CTO seems to expect massive buying pressure for XRP when the AMM launches.

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Ripple CTO Cites Reason Behind His Excitement

Notably, Schwartz made the latest remarks while addressing questions regarding the AMM on X. As The Crypto Basic reported, he had earlier expressed his enthusiasm for the upcoming XRPL AMM, citing it as one of the features he is most excited about for XRPL. 

When questioned about the reason behind this sentiment, he disclosed that the use of automated trading strategies by AMMs to harness market volatility is the primary driver of his excitement.

An XRP community member, Saul, raised a pertinent question about this strategy, seeking to understand whether “harvesting volatility” could also mitigate price swings or if it was solely focused on profit generation.

Schwartz clarified the matter, explaining that, in theory, harvesting volatility aims to reduce price volatility by strategically selling XRP during price increases and buying more during price declines. 

This approach essentially transforms market volatility into a source of yield, potentially stabilizing the XRP price over time.

Notably, the XLS-30D Amendment, which is meant to introduce the XRPL AMM, is up for voting, having been included in the latest XRPL version, rippled 1.12.0. The AMM feature will go live once it receives validator consensus.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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