The XRP price is facing a bearish sentiment, losing as much as 2.54% of its gain in 24 hours. According to market data, the coin was trading at $0.4961, with a market capitalization of $28.18 billion.
Amid this price fall, market watchers wonder if a recent XRP Ledger (XRPL) amendment hinged on price oracle can trigger a rally for XRP.
XRPL Price Oracle and What it Means
For context, XRPL’s Oracle pricing amendment went live recently, according to RippleX’s post on X. This new update makes a “Price Oracle” feature part of the XRPL, as defined in the XLS-47 specification. It integrates Band Protocol and DIA, two external oracles currently on the XRP Ledger.
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They will also be able to connect and provide price feed data. The XRPL Oracle pricing amendment is expected to store pricing information for developers and users.
This information is meant for asset pairs outside of the XRP Ledger. Smart contracts that rely on the XRP Ledger can access and then use this data. A blockchain oracle is usually known for feeding information about the outside world to the blockchain. After storage, this information is then accessible by Decentralized Applications (dApps) that run primarily on the blockchain.
Generally, oracles offer a secure means of bringing real-world data onto a blockchain system for smart contract use. The institutional DeFi ecosystem finds this service very useful, which is central to XRPL’s evolution. More importantly, it marks a significant step forward for institutional-grade Decentralized Finance (DeFi).
XRPL’s Oracle is built into the network as a protocol-native, not a Layer-2. This service is similar to XRP Ledger’s Automated Market Marker (AMM), which came along earlier this year. It is worth noting that the AMM feature on the XRP Ledger went live in March after months of development. It followed several developmental efforts and amendments by developers associated with Ripple Labs to boost XRP Ledger’s functionality.
Other Known XRP Ledger Upgrades in Recent Times
Besides the latest Oracle pricing amendment, XRPL has seen many other upgrades over the past few months. In September, it rolled out two major amendments, “fixEmptyDID” and “fixPreviousTxnID.”
The newly introduced upgrades received widespread reactions and ignited some positive market sentiments. The “fixEmptyDID” amendment halts the creation of empty DID ledger entries.
These entries generally take up valuable space in the past without offering any benefit. With the fixEmptyDID, XRPL has tried to stop that challenge.
The “fixPreviousTxnID” upgrade focused on improving transaction tracking. Adding PreviousTxnID and PreviousTxnLgrSequence fields could also enhance tracing the history of ledger modifications.
These generally boost the transparency of the XRPL which can drive adoption significantly.
XRP Price in the Mix
The presence of these numerous amendments and upgrades might serve as a springboard for the XRP price.
If all goes well, the coin may recover and flip the $0.5 support as a push. Ultimately, it may soar to print a multi-month high of $0.8 on a high adoption rate.
The signs are already showing up as of writing. XRP trading volume is pegged at $836.27 million after registering a 25.06% surge in the past 24 hours. Based on its trading volume outlook, it is obvious that XRP still has investors and traders hooked on it despite price action.
While there may be intermittent selloffs in the price of XRP, a rally is imminent.
