Just 'holding' XRP earns money... AMM revenue structure, actual success potential?

▲ XRP/ChatGPT generated image

A structure has been proposed where XRP holders can secure stable profits simply by participating in the network, without relying solely on price increases, signaling a shift in investment strategies.

According to crypto media outlet The Crypto Basic on April 11 (local time), Vet, a cryptocurrency investment expert and long-term XRP investor, revealed a method for generating profits using the XRP Ledger's Automated Market Maker (AMM) function. Vet explained that by depositing assets into the network to provide liquidity, a structure is formed where rewards can be received regardless of price fluctuations.

Vet also presented specific examples of profits. He analyzed that an investor holding 10,000 XRP could expect a monthly profit of $5 to $10 by participating in an AMM pool. Although the amount is limited, it is significant as a reward obtained by participating in network activities rather than simply holding the asset. Vet stated, “As the amount held increases, the compound effect comes into play, and the scale of profits can expand rapidly.”

The XRP Ledger's AMM operates algorithmically without a central operating entity. Investors can directly manage their assets, participate in global liquidity provision, and receive a portion of transaction fees as profit. As Ripple expands its collaborations with financial institutions, there is a possibility that network transaction volume will increase, and the revenue base will also expand.

This structure serves as a factor that strengthens the incentive for long-term holding. It can reduce the circulating supply in the market while also alleviating the burden of price volatility. Analysis suggests that if stable cash flow is secured, the downward support for investment sentiment will also be strengthened.

XRP is being re-evaluated as an asset with a profit-generating structure beyond its payment function. The AMM-based revenue model, despite being in its early stages, is attracting the interest of market participants and establishing itself as a new investment method.

*Disclaimer: This article is for investment reference only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*