XRP is the native token of the Ripple protocol and ranks among the largest cryptocurrencies by market capitalization. Unlike most cryptocurrencies, XRP doesn’t rely on a blockchain and uses a unique consensus algorithm instead of Proof-of-Work or Proof-of-Stake.
Here’s everything you need to know about Ripple’s protocol and its associated cryptocurrency, XRP.
Current XRP Supply
As of now, 49,139,217,191 XRP tokens are in circulation. Ripple was designed to replace the slow and expensive correspondent banking system for international payments, positioning itself as a modern alternative to SWIFT.
(Source: Coinbase)
Maximum Supply: 100 Billion XRP
Ripple’s total supply is capped at 100 billion XRP. Currently, 49% of the tokens are in circulation.
Initial Distribution:
- 80 billion XRP were allocated to Ripple Labs.
- 55 billion are reserved for network users.
- 25 billion are held by Ripple Labs.
Unlike Bitcoin or Ethereum, XRP cannot be mined. The remaining tokens are released gradually by Ripple Labs. In 2013, Ripple distributed 200 million XRP to members of the World Community Grid. Over the years, an additional 7.2 billion XRP were allocated to various projects.
Since XRP has a fixed supply, it is non-inflationary.
(Source: Börse Stuttgart, Wikipedia)
A Brief History of Ripple
The concept of Ripple dates back to 2004, predating Bitcoin. Ryan Fugger developed "RipplePay," which later evolved into the Ripple protocol under OpenCoin (2012). By 2015, it was rebranded as Ripple Labs.
Ripple’s approach contrasts with Bitcoin’s philosophy:
- Bitcoin: Decentralized, independent of banks.
- Ripple: Partners with banks and financial institutions.
Critics argue Ripple isn’t fully decentralized since it operates as a company rather than a peer-to-peer network. This has led to mixed XRP price predictions.
(Source: WirtschaftsWoche)
Transaction Speed: 4 Seconds
Ripple processes 1,500 transactions per second (TPS), far surpassing Bitcoin’s 7 TPS. The network is scalable enough to handle 50,000 TPS, rivaling Visa’s efficiency.
To prevent spam, each transaction incurs a 0.00001 XRP fee, which is subsequently destroyed. This creates artificial deflation, though the effect is minimal in the short term.
(Source: Wikipedia, WirtschaftsWoche)
SEC Lawsuit Impact
In January 2021, the SEC sued Ripple Labs, alleging XRP was an unregistered security. Major exchanges like Coinbase and Kraken suspended XRP trading.
The case hinges on Ripple Labs holding 50% of XRP’s supply, raising concerns about centralization. The lawsuit remains unresolved, creating uncertainty for XRP’s future.
(Source: Bitpanda)
Current XRP Price
As of now, XRP trades at €0.3718.
- All-Time High (ATH): €3.10 (January 2018)
- Current Price: ~88% below ATH
Experts remain divided on XRP’s future:
- Bullish Case: Potential 10x growth.
- Bearish Case: Could fall below $1 by 2025.
(Source: CoinMarketCap, Börse Stuttgart)
Market Capitalization
XRP’s market cap stands at €18.07 billion, making it the 7th-largest cryptocurrency.
Key factors driving adoption:
- Partnerships with Santander and UniCredit.
- Fast, low-cost cross-border payments.
(Source: CoinMarketCap, WirtschaftsWoche)
Conclusion: Will XRP Stand Out?
Ripple’s unique consensus protocol and institutional adoption set it apart. However, its centralization and regulatory challenges pose risks.
The outcome of the SEC lawsuit will significantly influence XRP’s trajectory. For now, it remains a cryptocurrency worth watching.
👉 Explore Ripple adoption statistics
FAQ
Q: How many XRP are left?
A: ~50.86 billion XRP remain undistributed.
Q: Can XRP reach $10?
A: Possible if adoption grows, but regulatory hurdles remain.
Q: Is XRP decentralized?
A: Critics argue no, as Ripple Labs controls a large portion of supply.
Q: Where can I buy XRP?
A: Binance, KuCoin, Bybit, and Huobi (but not Coinbase or Kraken).
Q: What’s the transaction fee?
A: Just 0.00001 XRP per transaction.
Sources:
- Bitpanda
- Börse Stuttgart
- Coinbase
- CoinMarketCap
- Wikipedia
- WirtschaftsWoche