Crypto : Staking On XRP Collapses... Should We Expect A Crash?

While the crypto market oscillates between hopes of recovery and cautionary signals, a discreet indicator draws attention: the evolution of staking on XRP. Despite recent bullish movements, on-chain data reveal a sharp decline in commitment on the XRP Ledger network. This lack of interest, which contrasts with the apparent momentum of the crypto, could reflect a general loss of confidence among investors in the project’s short-term solidity.

The staking drop : toward silent distrust?

The explosion of XRP reserves on exchanges raises questions about the short-term intentions of holders. Indeed, according to data published by XRPSCAN, the amount of XRP tokens currently locked in AMM (Automated Market Makers) pools fell to 12,906,712 XRP as of May 27.

Such a decline marks a break from the dynamics observed during previous periods of market upswings.

This figure reflects a clear decrease in XRP holders’ participation in staking mechanisms. The growing disinterest of investors in staking suggests they are less confident in the crypto’s future performance.

This retreat comes even as the crypto benefited from a widespread market bullish movement, thus underlining a decoupling between short-term price evolution and underlying sentiment.

Here is what the key indicators reveal:

• Total amount of XRP staked : down to 12.9 million XRP, currently a recorded low ;
• An implicit signal : a potential loss of investor confidence regarding medium-term prospects ;
• Behavioral effect : increased caution and reduction of long-term commitments through staking.

Staking, often interpreted as an act of confidence in the protocol and its stability, is here in decline. This can be read as a warning signal.

Investors now prefer immediate liquidity over locking their funds, possibly anticipating increased volatility or a lack of clear catalysts in the short term.

Liquidity dispersal : the proliferation of AMM pools

Alongside the decline in total staked XRP volume, another dynamic puzzles analysts: the number of active automated market maker pools has reached a record 20,299. This increase indicates that despite more limited volume involvement, new pools continue to be created.

Thus, more automated market maker (AMM) pools have been created with smaller amounts of XRP, which could be interpreted as a reaction to increased volatility or as an adaptation strategy to a more uncertain environment.

This liquidity dispersion suggests a shift in the behavior of XRP Ledger investors. Rather than concentrating funds in a few large pools, holders seem to prefer a fragmented approach, possibly to limit risks or better manage their exposure.

This is therefore not a total withdrawal from the network, but rather a redeployment of resources in more atomized forms. This proliferation of small pools may also signal the arrival of new entrants or more cautious profiles, who prefer to experiment on a smaller scale.

In the medium term, this development could have several implications. On one hand, it could strengthen network resilience by spreading liquidity across a larger number of points. On the other, it could also indicate a temporary disorganization, reflecting a lack of clear direction within the XRP community. The question remains whether this fragmentation is a transitional phase or a sign of a lasting reshaping of the DeFi landscape around Ripple’s crypto.