The second in the list is XRP but before going on to this crypto you should see the CRYPTO TRADING SHEET which gives you an overall idea of what to do next however we will suggest you to always double-check.
2. XRP crypto
XRP is the native cryptocurrency of the XRP Ledger (XRPL), a decentralized blockchain designed for fast and cost-efficient cross-border payments. XRP is often associated with Ripple Labs, the company that uses it as part of its payment ecosystem, though the XRP Ledger operates independently.
Key Details
- Launch Year: 2012
- Creators: David Schwartz, Jed McCaleb, and Arthur Britto
- Parent Company: Ripple Labs (related but not in control of XRP Ledger)
- Ticker Symbol: XRP
What Is XRP Used For?
XRP serves as a bridge currency for financial institutions and individuals, enabling:
- Cross-Border Payments: XRP facilitates near-instant and low-cost transfers, making it ideal for international remittances.
- Liquidity: Acts as an on-demand liquidity solution for financial institutions through Ripple’s On-Demand Liquidity (ODL) service.
- Transaction Fees: XRP is used to pay transaction fees on the XRP Ledger.
How XRP work?
XRP transactions are processed on the XRP Ledger, which uses a Unique Node List (UNL) consensus mechanism. Unlike Proof-of-Work (used by Bitcoin) or Proof-of-Stake (used by Ethereum 2.0), the XRP Ledger is faster and more energy-efficient.
- Transaction Speed: 3-5 seconds.
- Transaction Fees: Typically $0.0002 per transaction.
- Throughput: Processes up to 1,500 transactions per second (TPS).
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Advantages
- Speed: Settlements in seconds compared to hours or days for traditional systems.
- Low Cost: Ultra-low transaction fees make it attractive for global payments.
- Scalability: Handles high transaction volumes efficiently.
- Eco-Friendly: Far less energy-intensive than Bitcoin or Ethereum.
Challenges
- Regulatory Concerns:
- Ripple Labs has faced lawsuits, including the high-profile SEC lawsuit, claiming XRP is a security. The case has created uncertainty for XRP adoption.
- Centralization Allegations:
- Critics argue that Ripple Labs’ control over a significant portion of XRP’s supply may pose centralization risks.
- Competition:
- Competes with other payment-focused cryptocurrencies like Stellar (XLM) and traditional systems like SWIFT.
Key Features
- Decentralized Blockchain:
- Operates independently of Ripple Labs, maintained by validators worldwide.
- The network ensures security and transparency without mining.
- Pre-Mined Supply:
- XRP has a total supply of 100 billion coins, all pre-mined.
- Ripple Labs initially held a large portion of this supply, which has been distributed gradually.
- Eco-Friendly:
- Minimal energy consumption compared to Bitcoin and Ethereum.
- Interoperability:
- Can be integrated with multiple payment systems, making it versatile for financial institutions.
- Built-In Decentralized Exchange (DEX):
- The XRP Ledger includes a DEX for trading XRP and other assets.
Tokenomics
- Total Supply: 100 billion XRP.
- Circulating Supply: Approximately 53 billion XRP (as of January 2025).
- Distribution:
- Ripple Labs holds a portion of XRP in escrow, released monthly for liquidity purposes.
Use Cases
- Financial Institutions:
- Banks and payment providers use XRP for real-time, cross-border payment settlements.
- RippleNet, Ripple’s global payment network, incorporates XRP for liquidity.
- Individual Payments:
- XRP enables fast and inexpensive P2P payments.
- Microtransactions:
- Suitable for micropayments due to its low fees.
- Enterprise Solutions:
- XRP Ledger is being explored for tokenized assets, including NFTs.
Recent Developments
- Ripple SEC Case:
- In July 2023, a partial victory in court declared that XRP is not a security when sold to the general public. However, institutional sales remain under scrutiny.
- Expanding Partnerships:
- RippleNet has partnered with several banks and payment providers to use XRP for cross-border transactions.
- NFT Integration:
- The XRP Ledger now supports NFTs with low fees and high throughput.
Where to Buy XRP
XRP is listed on major cryptocurrency exchanges, including:
- Binance
- Coinbase
- Kraken
- KuCoin
- Bitstamp
