- XRPL is expected to pass an amendment allowing users to create an AMM pool for RLUSD today.
- The XRP/RLUSD AMM pool will allow holders to participate in liquidity providing services.
- The RLUSD holders were unable to participate in the LP services because of a clawback feature.
The XRP Ledger (XRPL) is set to vote on a new amendment that would allow users to create an Automated Market Maker (AMM) pool for the newly-released stablecoin, RLUSD. This move gives an additional use case to the real-world asset-backed stablecoin which American fintech firm Ripple debuted last year in December.
According to official documents, the amendment will allow the creation of the AMM pool. This would enhance liquidity and trading efficiency within the XRP ecosystem, which includes the XRPL DEX. The benefits arise from AMMs’ ability to automate the trading process by using liquidity pools instead of traditional order books, allowing for seamless token swaps with lower slippage.
The inclusion of RLUSD, a real-world asset-backed stablecoin, further strengthens XRPL’s DeFi capabilities, potentially attracting more users and institutional players. The amendment is expected to pass today and if passed, it could increase XRP’s utility, drive demand, and potentially lead to new all-time highs for the altcoin.
It’s worth noting that the XRPL launched the AMM functionality in December 2024. This allowed members of the XRP ecosystem to earn while providing liquidity. However, the holders of RLUSD have not been able to participate in the AMM functionality because of a clawback feature. This feature lets the entity behind the token recall the assets that could potentially be used for illicit activities.
XRP Price Analysis: Can the Amendment Spark New All-Time Highs?
XRP is trading at $3.11 at the time of writing, down 0.40% in the past 24 hours according to CoinMarketCap data.
Notably, the RSI indicator below reads a value of 62.04. This indicates that the bulls are currently in control of the altcoin’s price action. The gradient of the line suggests that the buyers are trying to break the prevailing consolidation phase of XRP and push the token higher.
Related: Whales Drive XRP and ADA Bullish Surge: Will New All-Time Highs Follow?
The price action of XRP is situated in the upper end of the Bollinger Bands. This suggests that, overall, the altcoin’s price trajectory is bullish. The upper trendline acts as resistance for the XRP price action and a breakout above it could signal new ATHs for the coin.
Related: XRP Targets $3.62 After Completing ABC Correction
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