Ripple (XRP) is the native cryptocurrency of Ripple Network. It is a cryptocurrency with low trading cost and global circulation. Ripple (XRP) was officially issued on April 18, 2011, with a total supply of 100 billion. XRP is the only common currency in the Ripple (XRP) Network.
The development of XRP is inseparable from the development of the Ripple Network. The early Ripple Network needs to establish a trust chain to transfer money, so there are fewer users. After Opencoin took over Ripple (XRP), it made improvements such as introducing XRP, introducing a gateway system and allowing strangers to transfer money. Thus, the world's first open-source payment network was born. As the currency in circulation in Ripple Network, XRP also began to develop rapidly.
How does Ripple (XRP) Work?
Unlike other cryptocurrencies, XRP does not run on the blockchain, but uses the Robust Principal Component Analysis (RPCA) algorithm to make the Ripple Network run. However, its working principle is similar to the blockchain, and the nodes must reach a consensus to validate the transaction on the network. What is more special about Ripple Network is that users can not "mine" XRP, that is, XRP are not issued through miners' mining activities. XRP are pre-mined and issued. The total number of tokens is 100 billion. The issuing mode is Ripple's market release at the rate of 1 billion per month.
Like the blockchain, the protocol used by Ripple Network has a "distributed general ledger", and also has a consensus mechanism and validation mechanism between nodes. After the birth of each new transaction record of Ripple Network, it will be quickly validated according to the consensus and validation mechanism, and summarized into the ledger instances within this time period. The ledger of Ripple Network is arranged and linked in chronological order.
What is Ripple (XRP)?
The emergence of Ripple Network has promoted the transactions between fiat currencies. As the only circulating cryptocurrency in Ripple Network, XRP is fast and simple. Compared with other cryptocurrencies, users prefer to use XRP and Ripple Network for cross international or large remittance. For example, the confirmation time of Bitcoin payment takes 40 minutes, while the time of XRP payment is only a few seconds, and the trading fee is also very low. However, the XRP is not perfect. Its issuing method and circulation have been criticized. Since its issuance in 2011, the current circulation of XRPs in the market has exceeded 40 billion, but this also includes 20 billion of the three founders. This means that the actual circulation of XRPs is barely more than the total ownership of the three founders. In addition, Ripple sells and releases XRPs through a third party on a monthly basis, which is not consistent with the decentralized concept pursued by the cryptocurrency community.
Ripple (XRP) Crypto Wallet
In addition to placing XRP in the Gate.io exchange to facilitate trading, XRP can also be placed in a crypto wallet.
There is no official wallet for Ripple (XRP). You can choose any trusted hot and cold wallet that supports the storage of XRPs.
There are two schools of thought in determining the price of XRP.
By way of intrinsic value: This typically involves on-chain metrics, project metrics and financial metrics of XRP, collectively known as fundamental analysis. The law of supply and demand, tokenomics, use case, project roadmap as well as regulations and governance involved would affect the value of XRP from a long term perspective.
By way of price action: Primarily analyzed via candlestick chart patterns and technical indicators such as MACD, RSI and the bollinger bands, technical analysis forecasts the price of XRP on the basis that history tends to repeat itself. As the candlestick charts are a general representation of the emotion of the market, news announcements and community sentiment can be significant price action drivers for XRP as well.
HODLers tend to prefer the long term nature of fundamental analysis, whereas short term traders tend to rely on technical analysis more. In reality, both analyses may combine and create interesting scenarios for XRP and the cryptocurrency market as a whole.
2. What is the highest price of XRP in history?
XRP achieved the all-time high of $3.40 in 2018-01-07T00:00:00.000Z, and is currently trading at $0.50.
3. What is the lowest price of XRP in history?
In 2014-05-22T00:00:00.000Z, XRP reached the all-time low of $0.0027.
4. Should I buy XRP now?
It is important to remember that XRP, like all other cryptocurrencies, are subject to extreme market conditions, legal policies, project team management and other unpredictable factors. As such, cryptocurrencies fluctuate greatly and it is important to manage your own risk level. Users are advised to do your own research when making investment decisions in the crypto market.