Ripple's Technical Director Doubts XRP Price Volatility Decline
Date: 2024-02-26 Author: Dima Zakharov Categories: IN WORLD
Ripple's AMMs and XRP Volatility
Ripple's Technical Director, David Schwartz, recently dismissed the notion that Automated Market Makers (AMMs) on the XRP Ledger (XRPL) could significantly decrease price volatility for XRP in the near future.
AMMs for Institutional Payments
Schwartz previously detailed Ripple's strategy in utilizing AMMs for Ripple payments, focusing particularly on institutional transactions. The aim is to utilize liquidity provided by AMMs on DEX (Decentralized Exchange) to facilitate institutional payments, potentially balancing AMMs and reducing volatility.
Navigating Uncertainty
The significant move of XRP Ledger towards integrating AMMs faced a setback as key validators withdrew support following the discovery of a bug. This event poses a serious threat to the amendment's success, which previously garnered an 85.7% approval rating among validators.
Conclusion
The future of XRP price volatility remains uncertain despite efforts to integrate AMMs into the XRP Ledger. Schwartz's skepticism highlights the challenges in leveraging new technologies to address longstanding issues in cryptocurrency markets.
