XRP has been criticized as the 'biggest scam' in terms of volume on DEX—This is Ripp's response.

There has been a heated debate in the cryptocurrency community after a famous analyst, Aylo, called XRP the "biggest financial scam" in history. His basis for this is what he sees as a lack of utility in real life despite the huge market value of XRP being 140 billion dollars. To support his claim, he cited data from DeFiLlama, showing that the DEX volume of XRP Ledger totaled only $44,000 in the past 24 hours.

Aylo's remarks have sparked controversy since they were made, as he questioned why something with such a high market capitalization has such low trading volume. He also noted that the total locked value (TVL) on the XRP Ledger is only at 80.63 million dollars compared to other leading blockchain networks. Most members of the cryptocurrency community feel concerned. Ripple's Chief Technology Officer, David Schwartz, addressed these concerns. He clarified that Aylo's data can only represent automated market makers (AMM) on the XRP Ledger, which he referred to as a small percentage of the total cryptocurrency usage.

Schwartz implied that the reported volume does not fully reflect the scope of XRP's activity or its broader usefulness in the financial system. Furthermore, Vet, a dUNL Validator for XRPL, also refutes the claims. He clarifies that the volume on DeFiLlama may not necessarily represent all activities, as not all transactions are accounted for.

According to Vet, the actual volume in 24 hours on the XRP Ledger DEX reached a total of nearly 9 million dollars, much higher than Aylo's figure of 44,000 dollars. Although DeFi activity is low, the utility of XRP in finance remains strong. The debate surrounding the DEX activities of XRP also raises questions about its practical utility on a larger scale. While the low volume is seen as reflecting poor adoption, Ripple continues to emphasize the role of XRP as part of the financial infrastructure, rather than as a DeFi speculation. The company has been actively working with major financial institutions, providing cross-border payment solutions, liquidity, and payment efficiency. Ripple's technology is designed for banks and payment service providers to send money faster and at a lower cost compared to traditional financial networks. Therefore, the value proposition of XRP far exceeds conventional DeFi metrics, including TVL and DEX volume. Most supporters argue that although XRP may not have much DeFi activity, its relevance in the financial system is still strong. This is a valid viewpoint when considering XRP's position relative to other blockchain networks. Unlike Ethereum, Bitcoin, or Solana, with a huge DeFi ecosystem, the main strength of XRP lies in its ability to facilitate fast and low-cost cross-border transactions. Ripple has formed partnerships with major banks and payment processors, reinforcing its position in global finance. The AMM feature of XRP enhances DeFi utility for holders Although traditionally focused on financial institutions, Ripple's native cryptocurrency is also trying to strengthen its presence in DeFi. One of those efforts is the launch of automated market makers (AMM) on the XRP Ledger. This feature allows users to provide liquidity for trading pairs and earn fees, similar to the liquidity pools of Uniswap. Panos Mekras, co-founder at Anodos, described how XRP token holders can use AMM as a risk hedging tool.

By providing liquidity for a pair with XRP and a stablecoin, users can hedge against the price volatility of XRP and earn transaction fees. He further explains that this could be a risk-reducing strategy for long-term investors without necessarily meaning closing their Ripple cryptocurrency holdings.