As excitement builds in the XRP community for the imminent launch of an automated market maker (AMM) system on the XRP Ledger, a prominent analyst has issued a stark warning.
Popular cryptocurrency analyst Mr. Huber has told their over 64,000 on the microblogging platform X (formerly known as Twitter) that the price of XRP could tank after the AMM platform goes live.
The analyst cited the experience of Stellar ($XLM), a major XRP competitor, as a cautionary tale, as XLM’s value plummeted by more than 80% after its AMM functionality went live in late 2021 amid a wider cryptocurrency market drop.
It’s important to note that XLM’s AMM launch coincided with the peak of the 2021 bull market, a period followed by a broader market downturn, with Bitcoin itself falling from a high around $69,000 to less than $16,000 before recovering.
Some users pointed to the market crash, rather than the AMM itself, as the primary driver of XLM’s price decline. The market is now widely seen as being in a bullish trend, with Bitcoin’s price hitting a new all-time high of over $73,400 earlier this month before enduring a significant correction.
