Ripple is addressing a technical glitch in its XRPLedger AMM and preparing a solution for implementation. The fix requires approval from 80% of the XRPLedger community within two weeks for activation. Meanwhile, the price of XRP remains stagnant at $0.62, trading below significant resistance levels.
The glitch in the AMM affected XRP traders, preventing them from depositing funds into AMM pools. Ripple advises traders to redeem their LP tokens until the issue is resolved. The company, along with other members of the XRP Ledger community, swiftly identified and addressed the problem, working on a solution to be voted on by validators.
Once activated, the fix will allow the XRPLedger community to resume earning passive income through AMMs. The solution is currently undergoing review, testing, and preparation and will be released as version 2.1.1. However, until then, traders are urged to refrain from depositing funds into AMM pools.
In other news, the ongoing lawsuit between the SEC and Ripple includes details about XRP sales to institutional investors, with the SEC seeking $2 billion in fines and penalties. As for technical analysis, XRP’s price has been trading sideways below the $0.75 resistance level, with the potential for a breakout if certain conditions are met. However, dropping below key support levels could signal a bearish trend reversal.
BITCOIN, ALTCOINS, STABLECOINS FAQS
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.