What to know:
- The rapid expansion of the XRP Ledger’s DEX has significantly contributed to making 2024 a landmark year for Ripple.
- The trading volume has averaged over $17 million per day this month, totaling over $1 billion since the AMM’s launch in 2024.
On January 30, Ripple Labs’ CEO Brad Garlinghouse reported that the swap volumes on the XRP Ledger’s decentralized exchange (DEX) exceeded $400 million in January. This surge is attributed to increasing interest from larger market participants.
“The rapid expansion of the XRP Ledger’s DEX was one of the key reasons that made 2024 one of the most monumental years for Ripple,” Garlinghouse stated. This growth also coincides with early promising signs for Ripple’s US dollar-pegged stablecoin, RLUSD, and multiple proposed XRP exchange-traded funds (ETFs).
Since November, traders have been optimistic that a crypto-friendly Trump administration could positively influence tokens and products tied to U.S.-based companies, like Ripple and its closely related XRP.
The DEX on the XRP Ledger is unique as it is integrated directly into the blockchain’s functionality instead of functioning as a separate application, unlike many other decentralized exchanges such as Uniswap or Pancakeswap. It adopts an order book system where users can execute limit and market orders for XRP and other assets created on the XRP Ledger, which may include tokens or IOUs for various currencies or commodities.
