The post Ripple CTO Unveils Hidden XRP-Memecoin Connection on XRPL appeared on BitcoinEthereumNews.com.

XRP price shifts directly impact XRPL meme coins due to automated liquidity pools, causing their values to move in sync. External factors like investor sentiment, speculative trading, and crypto whale activity can push XRPL meme coin prices beyond XRP’s influence. Ripple’s Chief Technology Officer, David Schwartz, has shed light on how XRP’s price fluctuations directly influence many meme coins built on the XRP Ledger (XRPL). These tokens, often fueled by automated market maker (AMM) liquidity pools, follow XRP’s price movement due to a fixed exchange rate mechanism. I noticed something interesting about many memecoins on XRPL. In many cases, nearly all of their liquidity is in the form of an AMM between XRP and the memecoin. This means that if the price of XRP (say, measured in dollars) goes up, say, 5%, the price of the memecoin (again,… — David “JoelKatz” Schwartz (@JoelKatz) March 3, 2025 Schwartz, in a recent post on X, explained that most XRPL meme coins are tethered to XRP through these AMMs, ensuring their value moves in sync with XRP’s dollar price. The setup forces any external change in XRP’s valuation to be mirrored by meme coins, keeping the two assets closely tied. A prime example is “XRP ARMY,” a meme coin that has soared to a market cap of $26.1 million with a liquidity pool worth $2.09 million. The correlation means that if XRP rises by 5%, XRP ARMY and similar tokens will likely see an identical percentage increase—unless another external factor influences the price. Meme Coin Prices Tied to More Than Just XRP Despite the strong link to XRP, XRPL meme coins are not entirely at its mercy. External market forces, investor sentiment, and high-value transactions from crypto whales can all push their value in unexpected directions. Community hype, speculative trading, and sudden investor…

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Filed under: News - @ March 4, 2025 3:23 am