MBFAs we enter the next chapter of our journey into 2024, a year that is shaping up to be radically transformative for the XRP Ledger ecosystem and the XRP community. New groundbreaking enhancements are on the horizon that are set to redefine the boundaries of the XRP Ledger. The AMM, EVM side chain/XchainBridge and Decentralized Identifier are the big 3 amendments we are anxiously awaiting to be passed through governance process by UNL Validators, as each are integrated into the network layer of the XRP Ledger they’ll undoubtedly drive a burgeoning demand for the digital asset, XRP!
This is a call to arms for every XRP enthusiast, investor, and visionary to embrace the impending wave of innovation and spread awareness throughout the community. This is a significant shift in what the majority of XRP community has historically focused on but it’s not speculation or hype, this is happening and we’re on the cusp of a massive transformation that’s bound to catch many in the community confused as they realize what is happening. Let’s accelerate that process by spreading awareness of the facts and resources for the community to level up their knowledge base, including many of the YouTubers and influencers in the XRP Community. XRP community is mission critical, as Arthur Britto said 8 years ago, this is now more important than ever before!
New innovations are rapidly evolving and we are witnessing a maturing of the entire crypto, blockchain and DeFi landscape. The ongoing shift away from centralized exchange has spurred CEX’s to offer retail and institutional Staking on-chain, along with other products and services that are integrated into on-chain Dapps and DEX’s across multiple public blockchain network. Coinbase launched BASE in 2023, a Layer 2 Optimistic Roll-Up on top of Ethereum, Kraken is rumored to be building its own L2 network, too. Institutional interest
in DeFi, Liquid Staking, trading via AMM DEX’s, and decentralized lending/borrowing protocols. This trend has accelerated ever since the FTX collapse in late 2022 and the recent approval of numerous Bitcoin ETF’s by the SEC as traditional financial institutions are actively developing their tokenization of Real world asset strategies, which will ultimately converge with crypto and DeFi on public blockchains. The XRP Ledger and its growing network of powerful side chains are poised to be at the heart of Institutional DeFi. Due to Ripple’s pivot away from only focusing on cross border payments, towards focusing on Tokenization, Liquidity, Custody, and Compliance. Ripple’s acquisition of custody tech provider Metaco in 2023 for $250mill brought on high powered digital asset custody solution and an orchestration service along with more capabilities to better serve institutions looking to tokenize real world assets. Ripple’s been quietly building out the necessary ancillary compliance infrastructure and Trust Anchor Verification infrastructure that will go along with Decentralized Identity verification using Decentralized Identifiers linked to an XRPL account. The prize to capture Institutional DeFi for Ripple and the XRP Ledger can be measured in the Trillions of dollars.
The advent of XLS-30d, the Automated Market Maker (AMM) liquidity pools, is set to revolutionize the decentralized exchange (DEX) platform within the XRPL, integrating seamlessly with the existing Central Limit Order Book (CLOB). This monumental enhancement is more than a mere adjustment; it is a harbinger of a robust, native economic model for XRP, offering an avenue for yield generation that is both decentralized and non-custodial.
Imagine the impact: a surge in Total Value Locked (TVL) as vast quantities of XRP pour into the different AMM’s liquidity pools. These AMM pools are the bedrock for a foundation of unified liquidity at the network and protocol layer of the XRP Ledger. Liquidity Providers (LPs) will receive LP tokens, which can serve as collateral across a spectrum of DeFi applications, ensuring that
opportunity costs are not only preserved but optimized. This unlocks one of DeFi’s superpowers, COMPOSABILITY!
But what makes this leap forward truly extraordinary is its permission-less nature. From every corner of the globe, individuals can deposit XRP into any AMM liquidity pool in which XRP is 1 of the 2 assets in the pool, without the specter of centralized censorship or any direct connection to the issuer of the other asset in the pool. This inclusivity and resilience amplify the allure of XRP, positioning it as an investable “Capital Crypto Asset” that now earns steady stream of yield in both XRP and the other asset in the pool. This value accrues the LP tokens that the liquidity provider received when they initially deposited assets in the AMM pool. LP tokens on the XRPL deliver their owners consistent daily compounding yield amid a backdrop of minimized volatility, particularly in XRP/Fiat pools.
The narrative of the XRP Ledger is expanding exponentially with the integration of sidechains such as the Hooks powered Xahau, Futureverse designed Rootwork, the EVM side-chain, and let us not forget the minting of FXRP onto Songbird and Flare Network, all are expected to launch in 2024. These extensions alongside a plethora of DeFi Dapps and composable new DeFi protocols that’ll harness the liquidity of the XRP DEX AMM Pools, propelling additional demand for XRP and enabling it to vie with other cryptocurrencies that boast staking models and significant network security TVL XRP currently has barely any TVL, that will significantly increase ultimately into the billions of dollars in the future once the AMM Pools have steady volume running through them via Ripple enterprise ODL payments and Liquidity Hub Trading but also from Institutional and retail DeFi Dapps and protocols. This will create an organic floor price for XRP due to the fact that there’s always a consistent demand for XRP as liquidity in these AMM pools to support the volume running through them and the yield that they earn without sacrificing opportunity cost for Liquidity Providers.
In 2024, the XRP’s foray into the open metaverse and DeFi will crystalize, catalyzing on-chain liquidity and the genesis of a formidable DeFi ecosystem. This ecosystem will not merely be sustained by the community but will likely merge with Ripple’s institutional DeFi ambitions, propelling the tokenization of Real World Assets (RWAs). As this unfolds, speculative trading on centralized exchanges will be dethroned as the primary driver of XRP’s valuation.
Now, it is imperative to recognize that the future financial system is being architected beneath our feet, with DeFi, Web3, and an expansive network of Layer 1 blockchains laying the foundation. The convergence of DeFi Dapps and protocols, tokenization, and innovative compliance solutions – such as self-sovereign digital identities and zero-knowledge proofs – is reshaping the landscape before our eyes.
Fellow XRP community members, the challenges ahead are formidable, but they are not insurmountable. We must pivot away from the seduction of unfounded price predictions and conspiracy theories that have plagued our discourse. It is time to shed the cloak of intellectual complacency and the “XRP Maxi” mindset, to step out of the echo chambers that stifle growth and knowledge.
The call to action is clear and urgent. We must rise, informed and prepared, to engage with the XRPL Network in its entirety – as liquidity providers, participants in the EVM and other sidechains, and as pioneers in the expanding DeFi ecosystem. It is incumbent upon us to elevate the level of discussion, to become ambassadors of knowledge, and to lead the community confidently into a future where the XRPL stands as a cornerstone of the next-generation financial system.
In anticipation of these developments, I encourage you to delve deeper into the “Level Up XRP Community” playlist on my YouTube channel, where a comprehensive exploration of these breakthroughs awaits. Or for those looking to maximize their wealth by arming themselves with the most knowledge possible can join the Mickey B. Fresh Patreon Group which we are celebrating our 3 year anniversary in February 2024. Many of the VIP members have been part of the group since the very beginning and we have an amazing group of members. Together, let us harness this momentum, let us educate, innovate, and participate with the passion, enthusiasm, and professionalism that adds value and utility to the XRP Ledger and accelerates its adoption by institutions. Simultaneously we can also attract more developers and new people to the XRP Community!
The future is bright, the possibilities are boundless, and the time for the XRP community to awaken and seize the opportunities of 2024 is now. Let us march forward with unwavering conviction and an unyielding commitment to the transformative potential of the XRP Ledger.
Mickey B Fresh
Trev444
Dip-Collector
MBF