XRP Facilitates Liquidity in EUR and BRL Trades on XRPL DEX

TLDR

• XRP served as a bridge asset in EUR and BRL trades on the XRP Ledger’s decentralized exchange.
• The network recorded 477 auto-bridging events, with XRP improving liquidity and exchange rates.
• EUROP/RLUSD was the most active trading pair, with 124 auto-bridging events.
• Around 15,000 XRP tokens provided liquidity for these trades, ensuring better pricing.
• 92% of trades occurred as Token/XRP pairs, while 8% involved Token/Token pairs.
• RLUSD, a Brazilian Real stablecoin, was involved in many auto-bridging transactions.

Recent on-chain data reveals XRP’s role as a bridge asset on the XRP Ledger’s decentralized exchange (DEX), specifically in trades involving EUR and BRL. Over 24 hours, 477 auto-bridging events occurred, where XRP facilitated transactions across various token pairs. This process enhances liquidity and improves exchange rates, benefiting traders by ensuring better pricing options.

Auto-Bridging Activity on the XRP Ledger

During the observed period, the XRP Ledger recorded 477 auto-bridging events, with several token pairs benefiting from XRP’s liquidity. The most active pairs included EUROP/RLUSD with 124 events, followed by RLUSD/BBRL with 67, and USDC/RLUSD with 46. XRP was used to bridge these pairs, ensuring more efficient and cost-effective trades.

Out of all the trades, 92% occurred as Token/XRP pairs, while Token/Token pairs represented the remaining 8%. Auto-bridging only occurred in 0.8% of Token/Token transactions, highlighting XRP’s dominance as a bridge asset. The volume of XRP used for liquidity amounted to around 15,000 tokens, supporting better pricing and smoother transactions for traders.

RLUSD and XRP’s Key Role in Auto-Bridging

RLUSD, the Brazilian Real stablecoin, appeared in many of the auto-bridging events, making it the most traded currency during the 24 hours. XRP acted as a crucial bridge in these trades, increasing liquidity and improving exchange rates.

Market makers also benefit from holding XRP, as it allows them to create markets between XRP pairs without counterparty risk. This makes XRP an effective tool for building markets across issued tokens. As the XRP Ledger’s decentralized exchange continues to evolve, the integration of XRP in bridging trades increases, providing liquidity for less common token pairs and making the system more efficient for users.

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