Ripple Labs has announced plans to integrate Automated Market Makers (AMMs) into the XRP ledger. The decision has left the XRP community uneasy as they consider the potential long-term effects of AMMs on the XRP price.
AMMs must be integrated into XRP Ledger
Ripple, a global payment network provider, has stated this intentions to include AMMs in the XRP Ledger to help improve liquidity. The introduction of SMPs in the XRP ledger is expected to be the Ripple ecosystem by providing improved trading efficiency and liquidity. The initiative also aligns with Ripple’s efforts to continue optimizing and innovating its blockchain infrastructure and network.
Although the announcement was met with skepticism by the XRP community and the broader crypto space, Ripple has expressed its desire to move forward with its plans, looking at the bigger picture and the potential success of AMMs in the ecosystem.
Many members of the crypto community have expressed concerns about the impact of AMMs integrated into it XRPL. Some members believe that the XRP price can be influenced and cause the token to become stable. Other members have welcomed the announcement with enthusiasm, anticipating the positive effects the initiative would have on the Ripple ecosystem.
Panos, member of the XRP community and co-founder of Anodos Finance, expressed concerns about the potential effect of AMMs on XRP price. He stated that AMMs could increase buying pressure and liquidity on XRP while improving its efficiency and adoption.
“XRPL AMM will potentially increase buying pressure on XRP as a significant number is expected to be locked on the AMM, which will also increase the liquidity of . declared.
Bulls struggle to maintain control of price | Source: XRPUSD on Tradingview.com
Community examines the impact of AMMs on the XRP price
After the announcement of AMMs are introduced in the XRP Ledgeran X (formerly Twitter) influencer, Digital Perspectives PermaBull sparked a series of heated discussions in the The value of XRP.
The X-influencer asked a series of controversial questions to the crypto community. One of the questions was whether the introduction of SMPs and Bank for International Settlements (BIS) regulations would ultimately transform the economy. Convert XRP into a stablecoin in the future.
“Do we see XRP becoming a Stablecoin with the introduction of AMMs and the BIS Prudential Treatment requirements?” the X influencer declared.
He added: “XLS-30D passes and AMMs will become an integral part of the XRPL. Will this change the characteristics of XRP and qualify as a Group 1b asset for BIS and other banks?”
In response to growing concerns, XRPL is advocating for Panos reassured community members who began to worry about the potential impact of AMMs on XRP. Panos confirmed that the fundamentals of XRP would never change even with the addition of an AMM.
“The characteristics of XRP can NEVER change. It will always remain the native coin of the XRP Ledger, a decentralized digital asset that anyone can trade freely. For that reason, XRP can never become a stablecoin, it is not technically possible and makes no sense whatsoever,” said Panos.
Featured image of CoinGape, chart from Tradingview.com