Rare Bitcoin - A furious debate has sparked within the crypto space following blockchain researcher Aylo referring to XRP as the “largest financial scam” in history. His thesis focused on XRP’s apparent lack of value in reaching a record-breaking $140 billion market capitalization. Aylo specifically targeted the XRP Ledger’s (XRPL) minimal decentralized exchange (DEX) trading volume, which he used as proof of the asset’s dubious usefulness.
Aylo, a researcher at blockchain source Alpha Please, referred to figures that indicated XRPL’s DEX had seen only $44,000 in 24-hour trading volume. He showed a snapshot from DeFiLlama to back up his assertion, contending that this kind of low trading was out of the ordinary for an asset of XRP’s scale.
Besides that, Aylo mentioned the TVL on XRPL stood at a mere $80.63 million—much less than large blockchain networks possessing well-established decentralized finance (DeFi) ecosystems. This raised questions regarding the actual use of XRP in the real world and the efficiency of its network.
Ripple CTO David Schwartz Responds
Ripple’s Chief Technology Officer David Schwartz replied to Aylo’s claims by pointing out that the data referenced only included Automated Market Makers (AMMs) on the XRPL. AMMs represent only a fraction of the network’s trading volume, Schwartz contended that the quoted volume numbers didn’t accurately reflect XRP usage as a whole.
To put that into perspective, XRPL had just added AMM functionality in March 2024, ten years after the blockchain was established. Its latest foray into DeFi in the form of NFTs, AMMs, and stablecoins is a sign that its ecosystem remains in the infancy stages relative to others.
Alternative Volume Figures from dUNL Validator
Vet, a dUNL validator, rebutted Aylo’s argument by presenting different trading volume statistics. According to him, the real 24-hour DEX volume on XRPL was approximately $9 million, much greater than the $44,000 Aylo mentioned.
Vet also clarified that DeFiLlama’s statistics may not represent the full scope of XRPL’s trading activity. He disclosed that he and Orchestra Finance had been collaborating with DeFiLlama to enhance data integration. Based on Vet, aggregating XRPL’s CLOB and AMMs provides a more realistic 24-hour trading volume of about $9 million.
Why Is XRPL’s DEX Volume Lower Than Competitors?
Even with the $9 million volume on DEX, XRPL trails chains like Ethereum ($1.44 billion), Solana ($1.087 billion), and Binance Smart Chain ($2.61 billion). It is mainly because XRPL has traditionally targeted payments over DeFi. Since its recent embrace of decentralized financial services, however, its level of trading continues to be somewhat low in contrast to blockchains that have exclusively targeted DeFi for years.
In addition, DEX volume does not dictate a blockchain’s legitimacy on its own. For instance, Bitcoin has over $1 trillion in market cap but DeFiLlama rates its DEX volume at only $238,740. This implies that depending solely on DEX activity for a blockchain’s utility measure is untrustworthy.
Conclusion
The controversy surrounding XRP’s trading volume highlights the importance of context when evaluating blockchain utility. While XRPL’s DeFi ecosystem is still growing, it remains a key player in the crypto market. As the network continues expanding into DeFi, its trading activity could increase, challenging claims of its lack of utility. Source
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