XRP Criticized as ‘Biggest Scam’ Over DEX Volume—Here’s Ripple’s Response

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• XRP faced criticism over its low decentralized exchange (DEX) volume, raising questions about its utility.
• Ripple defended the cryptocurrency’s broader role in global financial infrastructure beyond just DeFi metrics.

There was a heated controversy among the crypto community after a well-known analyst, Aylo, labeled XRP as the “biggest financial scam” in history. His basis for this was what he perceived as a lack of utility in real life despite XRP’s massive market value of $140 billion.

To substantiate his claim, he cited DeFiLlama data, which showed that XRP Ledger’s DEX volume totaled a paltry $44,000 within the last 24 hours.

Aylo’s words were controversial at the point at which they were made, as he questioned how something with such a high market cap had such low volume.

He also noted that the total value locked (TVL) on the XRP Ledger stood at a paltry $80.63 million compared with that on other leading blockchain networks. The majority of members of the crypto community felt his concerns.

Ripple’s Chief Technology Officer, David Schwartz, responded to these concerns. He clarified that Aylo’s data may only represent automated market makers (AMMs) on the XRP Ledger, which he referred to as a small percentage of the cryptocurrency’s total usage.

I can’t find the exact page you’re looking at, but I bet that’s just looking at AMMs on XRPL, a miniscule fraction of what people use XRP for.

— David “JoelKatz” Schwartz (@JoelKatz) March 21, 2025

Schwartz implied that the volume that had been reported did not reflect the full breadth of XRP’s activity or its broader usefulness in the financial system.

Moreover, Vet, a dUNL Validator for XRPL, also refuted the claims. He clarified that volume on DeFiLlama might not necessarily represent all activity, as not all trades had been accounted for.

It’s arguably the biggest opportunity market in whole crypto.

No other blockchain allows such an easy capture of over 6,000,000 accounts on chain with so little competition. XRP Ledger the place to build hands down.

Also it’s $9,000,000 vol 24h on the dex not 44k pic.twitter.com/AK4whdpRbJ

— Vet (@Vet_X0) March 21, 2025

According to Vet, the actual 24-hour volume on the XRP Ledger DEX totaled nearly $9 million, a much greater number than Aylo’s $44,000.

Despite Low DeFi Activity, XRP’s Utility in Finance Remains Strong

Controversy surrounding XRP’s DEX activity also calls into question its real-world utility on a larger scale. While low volume is argued to reflect poor adoption, Ripple still emphasizes XRP’s role as a part of financial infrastructure, not DeFi speculation.

The company has been actively working with major financial institutions, providing cross-border payment, liquidity, and settlement efficiency solutions.

Ripple’s technology is designed for banks and payment providers to send money faster and at a cheaper rate than on traditional financial networks. Therefore, XRP’s value proposition extends beyond typical DeFi metrics, including TVL and DEX volume.

Most supporters hold that although XRP may not have as much DeFi activity, its relevance within the financial system remains strong. That is a valid perspective when one considers where XRP stands compared to other blockchain networks.

Unlike Ethereum, Bitcoin, or Solana, with their huge DeFi ecosystems, XRP’s primary strength is its ability to facilitate rapid and low-cost cross-border transactions. Ripple has been forming partnerships with major banks and payment processors, cementing its place in global finance.

XRP’s AMM Feature Enhances DeFi Utility for Holders

Despite its traditional focus on financial institutions, Ripple’s native cryptocurrency has also been trying to increase its presence in DeFi. One such effort was the launch of automated market makers (AMMs) on the XRP Ledger.

This function enables users to offer liquidity for pairs of trades and earn fees, as with Uniswap’s liquidity pools.

Panos Mekras, co-founder at Anodos, described how XRP token owners can make use of the AMM as a tool for hedging.

How to use XRPL’s AMM as a hedging strategy:

Providing liquidity to an XRP/stablecoin pair gives you less exposure to XRP’s upside, but also less exposure to XRP’s downside.

The potential risk with providing liquidity on an AMM is impermanent loss. But it doesn’t need to be…

— Panos {X} (@panosmek) January 30, 2025

By providing liquidity for a pair with XRP and a stablecoin, users can hedge against XRP’s price movements and earn fees on transactions. He further explained that this may be a risk-reduction strategy for long-term investors that does not necessarily mean closing out their holdings of Ripple’s cryptocurrency.