Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

LimeWire Acquires Fyre Festival, Plans Fresh Start With a Crypto Spin

16/09/2025

CZ says stablecoins have defeated CBDCs globally, how come?

16/09/2025

Can Decentralized Indexing Save Web3?

16/09/2025
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    Price Breaks All-Time High Record Again – Here’s What We Know

    04/08/2025

    Bitcoin Switzerland? El Salvador to Host First Fully Native Bitcoin Capital Markets

    04/08/2025

    Bitcoin Breaks $119K, but XLM and HBAR Aren’t Impressed by Its Meager Percentage Gain

    04/08/2025

    High-Stakes Consolidation Could Define Q3 Trend

    04/08/2025

    Ethereum ETF Frenzy Pushes Investors Toward This New Small-Cap

    16/09/2025

    Ether could see the ‘biggest bear trap’ this month: Analysts

    15/09/2025

    Ethereum Whale Cashes Out Millions in DAI After Price Rally: $13.2 DAI Earned

    15/09/2025

    can $4,300 support prevent a deeper correction?

    15/09/2025

    The Sui Ecosystem’s Top 3 Altcoin Performers

    29/07/2025

    Floki Launches $69000 Guerrilla Marketing Challenge With FlokiUltras3

    28/07/2025

    Crypto Beast denies role in Altcoin (ALT) crash rug pull, blames snipers

    28/07/2025

    $1.6 Billion XRP Surge: Here’s What’s Unfolding

    28/07/2025

    LimeWire Acquires Fyre Festival, Plans Fresh Start With a Crypto Spin

    16/09/2025

    American Express Introduces Blockchain-Based ‘Travel Stamps’

    15/09/2025

    NFT sales show modest recovery, Pudgy Penguins jump 110%

    14/09/2025

    Twerk From Home Aims to Become the UFC of Exotic Dancing—With a Crypto Boost

    13/09/2025

    LimeWire Acquires Fyre Festival, Plans Fresh Start With a Crypto Spin

    16/09/2025

    CZ says stablecoins have defeated CBDCs globally, how come?

    16/09/2025

    Can Decentralized Indexing Save Web3?

    16/09/2025

    Stablecoin Usage Ramps up in Venezuela Amid Rampant Devaluation

    16/09/2025
  • Blockchain

    Can Decentralized Indexing Save Web3?

    16/09/2025

    UFC Expands Web3 Partnership with Fightfi’s Fight.ID Platform

    16/09/2025

    ICB Network Partners with Tectum to Pioneer Zero-Fee PayFi Transfers in Web3

    16/09/2025

    ATT Global Taps For Metas to Advance Web3 Ecosystem

    16/09/2025

    Philippine lawmakers push blockchain budget bills in House

    16/09/2025
  • DeFi

    Unlocking a New Era of DeFi Security

    16/09/2025

    Likwid.Fi Partners with RabitAI to Unlock DeFi Lending/Derivatives Trading Potential

    16/09/2025

    Maple Expands to Plasma with Launch of syrupUSDT, Backed by Tether

    16/09/2025

    Symbiotic teams with Chainlink, Lombard for cross-chain Bitcoin security

    16/09/2025

    TVL on Pumpfun’s DEX PumpSwap Breaks New High Above $330M

    16/09/2025
  • Metaverse

    KaratDAO and SecondLive Partners to Reshape Web3 Identity and Immersive Digital Worlds

    16/09/2025

    Metaverse ‘still has a heartbeat’ as NFT sales jump 27% in August

    12/09/2025

    CreataChain Joins LightCycle to Advance Fashion, Interoperability, and AI in Metaverse

    05/09/2025

    new institutional ‘trust’ layer to boost tokenized ESG investment

    04/09/2025

    Metaverse developer The Sandbox lays off 50% of staff and pivots to meme coin launchpad

    28/08/2025
  • Regulation

    CZ says stablecoins have defeated CBDCs globally, how come?

    16/09/2025

    Stablecoin Usage Ramps up in Venezuela Amid Rampant Devaluation

    16/09/2025

    South Korean Tech Giant Unveils Bold Crypto

    16/09/2025

    New ETF Filings Hint at Broader Crypto Product Boom Ahead

    16/09/2025

    JPMorgan Says Fed Won’t Cut Interest Rates in September, Explains Why!

    16/09/2025
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Binance Pay enters South Africa’s checkout lanes through Zapper tie-up

    15/09/2025

    Binance Warns Crypto Projects Against Listing Scams: Details

    15/09/2025

    Revolut Secures UAE Nod for Payments Business, Eyes Regional Expansion

    15/09/2025

    Prediction Market PredictIt Launches in October—Here’s What to Expect

    15/09/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Why 2025 Will See the Comeback of the ICO

    26/12/2024

    DeBox Partners with Mythoria to Merge AI-Led GameFi and Web3 Social Ecosystem

    16/09/2025

    Crypto Games Keep Shutting Down. This $500K Fund Aims to Help Players Recover

    14/09/2025

    Conflux Network and Salvo Alliance Targets Scalable Web3 Gaming Adoption

    13/09/2025

    Undeads Games TVL Reached $30M+

    12/09/2025

    DL Holdings to Enter Bitcoin Mining Through Convertible-Bond Deal

    16/09/2025

    Why Bitcoin Miners Are Powering AI’s Expansion

    14/09/2025

    Bitcoin’s Computing Muscle Flexes Harder

    13/09/2025

    Ethiopia is Turning Hydropower Into Bitcoin Mining

    13/09/2025

    Coinbase-backed petition pushes UK on blockchain and stablecoin policy

    15/09/2025

    China Imposes New Cryptocurrency Bans! Here Are the Details…

    15/09/2025

    Input Output Joins CryptoUK to Help Shape UK’s Digital Asset Future

    15/09/2025

    CFTC Nominee Brian Quintenz tells all in Winklevoss twins fight

    15/09/2025

    LimeWire Acquires Fyre Festival, Plans Fresh Start With a Crypto Spin

    16/09/2025

    CZ says stablecoins have defeated CBDCs globally, how come?

    16/09/2025

    Can Decentralized Indexing Save Web3?

    16/09/2025

    Stablecoin Usage Ramps up in Venezuela Amid Rampant Devaluation

    16/09/2025
  • MarketCap
NBTC News
Home»Altcoins»XRP Drops to $0.34 Against USDC on XRPL AMM, Here’s Why
Altcoins

XRP Drops to $0.34 Against USDC on XRPL AMM, Here’s Why

NBTCBy NBTC24/03/2024No Comments4 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


The price of XRP in the XRP/USDC pool has dropped to $0.34 worth of USDC, as market participants continued to make single side deposits shortly after the XRPL AMM launched.

The XRPL ecosystem has finally welcomed a native automated market maker (AMM) functionality after two years of exploring the idea. While the advent of the AMM presents immense opportunity for market participants and builders alike, its risks are worth considering.

One such risk comes from single-sided deposits to liquidity pools, which could drastically impact the price of one of the pool’s assets. Data spotlighted by XRPL validator Vet indicates that some market participants are already making this mistake hours after the AMM launched.

Shortly after the launch, Vet confirmed that the XRPL has already welcomed 10 AMM pools, with nine of them hosting XRP. This number has since increased to 119 as of press time, marking a 1,090% growth in under 24 hours.

Already 10 XRPL AMM Pools with 9 Pools have XRP on one side. https://t.co/Y0YTrOWy1n pic.twitter.com/AJZi60ghMu

— Vet 🏴‍☠️ (@Vet_X0) March 22, 2024

A Surge in XRP Single-Sided Deposits

However, a subsequent disclosure from Vet suggested that market participants had started depositing only XRP to the pools that contain XRP. For context, all AMM pools contain two assets. The aim of the pool is to provide liquidity for traders to trade both assets in a decentralized manner.

One such pool is the XRP/USDC pool, which has featured prominently since the AMM functionality went live. Notably, users who deposit their XRP or USDC to the pool function as liquidity providers, receiving LP tokens and rewards for their contributions.

These liquidity providers ought to deposit XRP and USDC equally to the pool to provide liquidity for both assets. Nonetheless, it appears market participants only chose to deposit XRP tokens into the pool, resulting in sustained single-sided deposits.

Single-sided deposits carry potential risks, including increased exposure to asset volatility, potential for impermanent loss, and possible slippage or price impact. The influx of single-sided deposits to the XRP/USDC pool triggered a price impact that dropped XRP’s value.

XRP Drops to $0.34 in USDC

The single-sided deposit of XRP tokens substantially increased the supply of XRP in the liquidity pool without a corresponding increase in USDC or demand for XRP. This imbalance led to a decrease in the price of XRP within the pool as the AMM algorithm adjusted to maintain equilibrium based on the relative quantities of the two assets.

As a result, XRP first collapsed to $0.43 worth of USDC, as spotlighted by Vet on X. With the single-sided deposits continuously increasing XRP’s supply, the token further slumped to $0.34 in the XRP/USDC pool.

For some reason people keep single side depositing XRP into pools driving the XRP/USDC price on the AMM down to $0.34 per XRP.

It seems some platforms don’t warn their users before single side depositing so they keep doing it. (h/t @_tequ_ ) https://t.co/g3YAQUYvfH pic.twitter.com/Z6txUSQZ3O

— Vet 🏴‍☠️ (@Vet_X0) March 23, 2024

While the sudden increase in XRP liquidity has the potential to trigger higher slippage for trades involving XRP in the pool, some market participants aimed to leverage the lower price of XRP within the pool as an arbitrage opportunity. They could buy XRP cheaply from the pool and sell it at a higher price in other markets.

However, the challenge to this arbitrage opportunity is the low liquidity for USDC in the pool. It bears mentioning that Circle has not deployed native USDC on the XRPL. As a result of this, market participants would need to procure wrapped USDC tokens from third-party protocols such as GateHub.

The inconvenience and risk associated with procuring USDC from third party platforms has led to reduced interest. Meanwhile, it appears the liquidity pool is balancing out, as the price of XRP has already recovered to $0.57 at the reporting time. XRP currently trades for $0.61 on Binance.


Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

Related Posts

The Sui Ecosystem’s Top 3 Altcoin Performers

29/07/2025

Floki Launches $69000 Guerrilla Marketing Challenge With FlokiUltras3

28/07/2025

Crypto Beast denies role in Altcoin (ALT) crash rug pull, blames snipers

28/07/2025

$1.6 Billion XRP Surge: Here’s What’s Unfolding

28/07/2025
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

LimeWire Acquires Fyre Festival, Plans Fresh Start With a Crypto Spin

16/09/2025

CZ says stablecoins have defeated CBDCs globally, how come?

16/09/2025

Can Decentralized Indexing Save Web3?

16/09/2025
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.