- 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 interest can send prices soaring independently of XRP’s movements.
A good example of this dynamic is when a meme coin gains sudden attention, drawing in speculators eager for rapid gains. Even if XRP remains stable, the added demand for that specific token can increase its price. However, the reverse is also true—when XRP surges, some meme coin holders may cash out for profit, leading to a price drop despite XRP’s upward movement.
Crypto analyst Egrag Crypto reacted humorously to Schwartz’s insight, joking, “In Simple English, he is telling you to go buy meme coins on XRPL.” His comment captures the excitement surrounding these tokens, as traders increasingly view them as an opportunity to ride XRP’s momentum while also benefiting from meme coin volatility.
13M XRP Locked in AMMs: XRPL’s Liquidity Expands
The growing interest in XRPL’s AMM pools signals a major shift in how liquidity is managed on the network. As of March 3, 2025, more than 13.53 million XRP have been locked into these liquidity pools, showing that traders are embracing AMMs for their efficiency and automated price balancing.
The surge in locked liquidity not only boosts trading volume but also makes XRPL more attractive to institutional investors seeking stability in the unpredictable crypto space. Increased liquidity reduces volatility, ensuring that meme coins and other assets maintain smoother price movements.
