This is a type of digital currency used by a payment platform named “RippleNet”, owned by the company “Ripple”. With RippleNet, you can send money faster and in a more secure manner via the RTGS system. The RippleNet platform is used by many international banks and financial institutes to transfer currencies within the global network in real-time.
At the backend of RippleNet, there is an open-source and distributed ledger called XRP Ledger where all transactions get recorded. Although XRP makes up the RippleNet infrastructure, it is its own individual entity. In comparison to Bitcoin and other cryptocurrencies, XRP transactions are relatively fast. The Ripple Network was founded in 2012 in the USA with the goal of making payments more convenient and faster with blockchain technology.
In its earlier years, Ripple stood for an alternative name called open-chain. There are two different Ripple products: XCurrent and XRapid. With XCurrent, users can make cross-boundary payments in real-time, while XRapid is used to convert FIAT currency into XRP in the most straightforward and efficient manner.
Ripple’s native cryptocurrency is known as XRP. The Ripple network enables XRP to be transferred, as well as the name of the firm that created it, which promotes its adoption by banks and other cross-border payment service providers. Because the XRP coin is designed to deliver faster transaction speeds than existing cryptocurrencies, it is especially useful as a payment currency. In Bitcoin, confirmations take as long as 10 minutes, but XRP and Ripple can be verified in less than five seconds. Considering Ripple’s value and potential, it makes sense why it’s considered a great investment in the cryptocurrency industry.
Jed McCaleb, Arthur Britto, and Ripple CTO David Schwartz created Ripple as OpenCoin. After it was rebranded as XRP, a project named Ripple Labs emerged, under the leadership of Brad Garlinghouse.
Former Ripple founder Jed McCaleb has launched Stellar, a similar cryptocurrency to Ripple, designed to rival Ripple in the cross-border payments sector. Despite this, Ripple continues to dominate the industry and shows no signs of losing ground to its competitors.
The History of XRP and Ripple
In 2020, ripple experienced a strong breakout but hit a stumbling block after negative XRP news appeared in the form of a lawsuit from the SEC. Chief US regulators claim that XRP tokens are unauthorized securities, and Ripple is breaking American law by offering unregistered securities to US investors. As of lately, the asset has been delisted on most cryptocurrency exchanges, which could harm its future performance. Though the regulatory challenges have been present, it appears technicals on the chart of the asset still remain bullish.
Its value was so insignificant, however, that many years after it was created, it was practically worthless. Prior to 2017, the asset was worth approximately $0.01, but as the token gained greater exposure in 2017 and leveraged the crypto bull run in that same year, it began to gain more value. A gradual rise soon followed as XRP reached $0.25 in May 2017.
Afterward, the asset could not be reversed, as crypto enthusiasts saw its potential and the value it delivered. All of 2017 and the early part of 2018 saw the value of the asset rise to an all-time high of $3.84. In the aftermath, the value of every crypto asset plummeted; it was widely considered to be a bubble, and like every bubble, it would burst. When the crypto market bull run of 2017 occurred, this was exactly the case. On average, its price hovered at about $0.30 in 2019, remained within the $0.50 range. The value of the coin has never recovered to its old glory as it has never exceeded a dollar since then.
In spite of this, the bullish run that was ignited at the end of 2020 resulted in a positive capital appreciation. After hitting a high of $0.8, XRP finished the year at $0.66. XRP’s value was supposed to rise in the early part of 2021, but it could not rise because of the lawsuit announced by the SEC.
Many exchanges delisted XRP following the announcement. Out of fear, many people who held the tokens sold them as well. XRP’s value plummeted to as low as $0.166 as a result. Despite this, the price surged to $0.755, a new high. As of today, the price of ripple ranges between $0.8 and $0.9.
There is no blockchain technology used for this coin, unlike most cryptocurrencies. It is powered by the Ripple Protocol, which eliminates the need for a distributed ledger database. A gateway is used to verify and process transactions that are tied to servers located in multiple countries.
Can You Mine XRP?
All tokens have an element of mining, but XRP is different. A 100 billion XRP coin is the maximum amount that XRP can be created. About 35% of that coin is in circulation, with the rest being held by the company that releases them periodically to keep a tight grip on supply and distribution. With every transaction, there are fewer coins available in the cryptocurrency market, making it deflationary.
Speed of a Transaction
One of Ripple’s strongest selling points is its ability to support multiple currencies at once. Transactions are conducted much more quickly than with other cryptocurrencies and beat SWIFT wire transfers, a system of payment that is commonly used in traditional banking. It is ideally suited to facilitate cross-border payments because of the quickness of XRP transactions.
As volatile as this market is, it is difficult to predict Ripple’s XRP’s value. Nevertheless, many platforms have forecast what the token will be worth in their own way, which makes it easy for investors to get a general understanding of what to expect. No professional has reviewed this XRP forecast, and it should not be relied upon for making any final decisions regarding XRP! The performance of XRP in the past doesn’t guarantee its performance in the future!