The XRP Ledger (XRPL) Automated Market Maker (AMM), which went live on the mainnet in Q1 2024, has reached a significant milestone by surpassing 10 million XRP in total pooled funds. This achievement highlights the growing adoption and utilization of XRP in the Decentralized Finance (DeFi) ecosystem.

AMMs are designed as unique Decentralized Exchanges (DEXs) that use liquidity pools to algorithmically price assets instead of creating offers with preset specifications. Holders can earn a portion of trading fees by offering their tokens as liquidity.

The XRPL AMM joins the existing Central Limit Order Book (CLOB), which has been an integral part of the XRPL since its inception. The CLOB offers fewer trust assumptions and centralized liquidity, addressing the vulnerabilities of smart contracts.

Despite the impressive growth in total pooled XRP, the price of XRP has not responded positively, currently trading at $0.4728 with a 1.84% decrease over a 24-hour period. This suggests that the market is yet to fully appreciate the significance of this milestone.

The increase in total pooled XRP is likely to attract more participants to the XRPL ecosystem, particularly those concerned with increased liquidity. This could lead to further user participation, innovations, and the overall boost of the DeFi niche on the XRP Ledger.

It's important to note that providing liquidity should be considered a separate income strategy and does not necessarily require users to hold the specific token they plan on trading. The total profit earned from trading fees is what matters most for liquidity providers.

As the XRP Ledger continues to evolve and attract more users and developers, it remains to be seen whether the price of XRP will eventually reflect the growth trends observed in the ecosystem.