XRP Staking Drops Despite AMM Pool Growth Amid Market Uncertainty

Despite XRP’s recent rally and strong daily gains, on-chain data from XRPSCAN shows a notable dip in XRP staking activity. As of May 27, only 12.9 million XRP are locked in automated market maker (AMM) pools, signaling a decline in investor confidence amid growing market volatility.

AMM pools on the XRP Ledger enable users to provide liquidity and earn yields, often reflecting broader sentiment toward the asset. The decrease in staked XRP, despite the recent price momentum, suggests caution among DeFi participants. This drop points to increased investor hesitancy about XRP's near-term prospects, particularly as the crypto market faces persistent price corrections and mixed trading signals.

Interestingly, the number of active AMM pools has grown to 20,299, indicating that while less XRP is being staked overall, liquidity is being distributed across a larger number of smaller pools. This trend could reflect risk management strategies, where users spread funds across multiple pools due to heightened price volatility and market uncertainty.

Although XRP reached a recent high of $2.45, it is now trading at $3.32—reflecting a modest 0.29% daily gain according to CoinMarketCap. The token remains resilient above the $2 mark, maintaining optimism among long-term holders who are watching for a potential breakout.

In conclusion, while XRP’s price performance remains relatively strong, the decline in staking activity combined with a broader pool distribution reveals a shift in investor behavior, driven by caution and uncertainty in the current market environment. The coming weeks may determine whether this trend reverses or deepens.