• Ripple CTO David Schwartz explains that most XRPL meme coins rely on AMM liquidity pools with a fixed XRP exchange rate, making their prices move in tandem with XRP.
• Notable XRPL meme coins such as “XRP ARMY” have reached a market cap of $26.1 million, supported by liquidity pools around $2.09 million.
• While their value is closely linked to XRP, independent factors like community hype, whale activity, and profit-taking can also affect their prices.

Ripple CTO David Schwartz recently shared insights on how many meme coins on the XRP Ledger are directly impacted by XRP’s price fluctuations. Schwartz stated that the majority of these meme coins rely on automated market maker (AMM) liquidity pools.

This setup causes their prices to move in tandem with XRP’s dollar value. For instance, if XRP rises by 5%, a meme coin paired with XRP in the AMM will typically also see a 5% increase, provided other factors remain constant.

I noticed something interesting about many memecoins on XRPL. In many cases, nearly all of their liquidity is in the form of an AMM between XRP and the memecoin. This means that if the price of XRP (say, measured in dollars) goes up, say, 5%, the price of the memecoin (again,…

— David “JoelKatz” Schwartz (@JoelKatz) March 3, 2025

XRPL Meme Coins Move with XRP

According to Schwartz, this mechanism is why XRPL meme coins exhibit price changes that mirror XRP’s own price action, unlike meme coins on other platforms that can swing wildly due to speculative trading. One key example is “XRP ARMY,” which has hit a market cap of $26.1 million with a liquidity pool of $2.09 million.

The fixed exchange rate maintained by the AMM ensures that any external change in XRP’s value is immediately reflected in the valuation of these associated assets.

Despite the tight link to XRP, XRPL meme coins are not completely immune to independent price drivers. Factors such as external news, large-scale whale movements, and community buzz can influence their value.

Even if the coin holders decide not to sell, a sudden surge in a meme coin’s price might lead to profit-taking, creating volatility that is separate from XRP’s performance. Traders holding these assets should be aware that their returns depend on both XRP’s price changes and meme coin–specific events.

For investors in XRPL meme coins, the built-in exposure to XRP can be both a benefit and a risk. On one hand, if XRP’s value increases, these meme coins will likely follow suit. On the other hand, any decline in XRP will automatically reduce the value of these tokens.

The dual nature of these price drivers means that traders need to closely monitor both trends and meme coin-specific factors when crafting their strategies. Some may use general price patterns to forecast expected moves in these meme coins, while others may view this tight coupling as an inherent risk.