XRP has maintained its position as one of the top three altcoins despite the market’s recent surge of new cryptocurrencies.
With a market valuation of $22.9 billion as of October 13, 2023, XRP is the third-largest altcoin after Ethereum and Bitcoin.
The success of XRP has been attributed to a variety of causes.
To start, XRP is a cryptocurrency that is utilized for cross-border payment settlement.
Financial organizations are attracted to XRP because of this capability because they are looking for cheaper and more effective ways to make international payments.
Second, XRP is a cryptocurrency with quick transactions.
XRP transactions are executed quickly, making them perfect for international payments.
And finally, XRP is a cheap cryptocurrency.
Because XRP transaction fees are so much lower than those of other cryptocurrencies, it appeals to consumers who wish to send money cheaply.
Despite its popularity, XRP has encountered a lot of difficulties.
The parent business of XRP, Ripple Labs, was sued in 2020 by the US Securities and Exchange Commission (SEC), which claimed that it had sold unregistered securities.
Although the case is still pending, it has hurt the price of XRP.
Competition from other utility cryptocurrencies like Solana and Avalanche is another issue for XRP.
Compared to XRP, these cryptocurrencies provide even faster transaction times and lower fees.
But XRP is still among the most widely used cryptocurrencies globally.
A wide variety of customers find it to be an appealing alternative due to its combination of utility, speed, and affordability.
In the upcoming years, XRP might face difficulties from rivalry, but its robust user base and cutting-edge technology might help it keep its place as one of the leading altcoins.
Here is a more thorough breakdown of the elements that made XRP successful:
Useful
Cross-border payments are settled using the cryptocurrency XRP.
Financial organizations are attracted to XRP because of this capability because they are looking for cheaper and more effective ways to make international payments.
The XRP Ledger protocol, a scalable and secure peer-to-peer payments platform, is the foundation upon which XRP is built.
In order to execute XRP transactions quickly and effectively, the XRP Ledger protocol is used.
Speed
XRP transactions are executed quickly, making them perfect for international payments.
Transactions using XRP happen far more quickly than with other cryptocurrencies like Bitcoin and Ethereum.
This is due to the XRP Ledger protocol’s scalable and effective design.
Cost
Because XRP transaction fees are so much lower than those of other cryptocurrencies, it appeals to consumers who wish to send money cheaply.
The normal transaction cost for XRP is 0.00001 XRP, or a few pennies in US currency.
Compared to the transaction fees of other cryptocurrencies like Bitcoin and Ethereum, this fee is far lower.
Difficulties
XRP has also encountered a lot of difficulties.
The SEC sued Ripple Labs in 2020, alleging that company had sold unregistered securities.
Although the case is still pending, it has hurt the price of XRP.
Competition from other utility cryptocurrencies like Solana and Avalanche is another issue for XRP.
Compared to XRP, these cryptocurrencies provide even faster transaction times and lower fees.
But XRP is still among the most widely used cryptocurrencies globally.