Discover our Coin of the Week series, where we spotlight transformative projects driving real-world utility in crypto. This week, we dive into XRP – the digital asset powering RippleNet’s global payment infrastructure and redefining cross-border finance.
Ripple launched XRP in 2012, making it one of the oldest cryptocurrencies still in active development and usage today. Unlike traditional crypto projects focused solely on decentralization, Ripple aimed to build bridges between banks and the blockchain.
Today, we will cover the following topics:
– About Ripple
– How does Ripple work?
– Key Features
– Technical Analysis
– Why is XRP The Coin of the Week?
About Ripple (XRP)
What is Ripple?
XRP is the native currency of the XRP Ledger (XRPL), an open-source, decentralized blockchain built specifically to facilitate high-speed and low-cost international payments.
It acts as a neutral bridge between different fiat currencies, enabling value to move globally without relying on traditional correspondent banking systems.
Ripple Labs — the company behind the protocol — works closely with banks, payment providers, and remittance services to use XRP for on-demand liquidity (ODL).
This means that instead of pre-funding accounts in various countries, institutions can leverage XRP to settle transactions in real-time, reducing both costs and settlement risks.
Dig deeper into XRP whitepaper.
XRP Token
XRP plays a multifunctional role in the XRPL ecosystem:
Transaction Medium
Used to pay for network fees and transfer value globally.
Bridge Asset
Facilitates seamless exchanges between different fiat currencies.
Anti-Spam Mechanism
A small amount of XRP is burned with each transaction to prevent spam attacks on the network.
Liquidity Tool
Central to RippleNet’s On-Demand Liquidity (ODL) service, which replaces traditional pre-funded accounts.
There’s a fixed maximum supply of 100 billion XRP, with no further minting. A portion of XRP is held in escrow by Ripple Labs to ensure predictable release over time.
How does Ripple work?
At the core of XRP’s functionality lies the XRP Ledger, a high-performance blockchain that uses a consensus mechanism instead of mining.
This allows transactions to be verified by a network of trusted validators — rather than by miners competing to solve complex algorithms — resulting in 3-5 second transaction times and low energy consumption.
Here’s how it works in practice:
Let’s say, User A in the U.S. wants to send funds to User B in Thailand.
Instead of converting USD to THB through multiple intermediaries, a remittance platform uses XRP as a bridge:
1- USD is converted into XRP.
2- XRP is sent instantly across the network.
3- XRP is converted into THB on the receiving end.
The result? A fast, cost-effective cross-border transfer with complete transparency.
Key Features and Use Cases
Ultra-Fast Settlement
Finality in 3-5 seconds makes XRP ideal for global payment rails.
Low Transaction Fees
Each transaction costs a fraction of a cent.
Scalable
Handles up to 1,500 transactions per second, with capacity to scale to enterprise levels.
Built-in DEX
The XRP Ledger has a native decentralized exchange that allows atomic swaps of various tokenized assets.
Global Partnerships
XRP is integrated into real-world financial institutions, including MoneyGram (formerly), SBI Remit, and several Asian remittance firms.
Eco-Friendly Design
XRP’s consensus algorithm consumes significantly less energy than Proof-of-Work blockchains like Bitcoin.
Technical Analysis
As per our latest altcoins article, XRP has been standing strong compared to any other altcoin.
It is currently rejecting a massive support zone at the intersection of the lower red and orange trendlines, aligning with the $1.85 support level.
As long as the $1.85 support level holds, we expect the bulls to kick in at any moment.
For the bulls to take over in the medium term, a break above the last major high marked in red at $2.185 is needed.
Why is XRP The Coin of the Week?
XRP stands out for its real-world utility. Unlike many crypto projects that are still building or prototyping, XRP has been live in production for over a decade, handling billions in transfers globally.
Moreover, Ripple’s partial legal victory against the SEC in 2023 helped restore investor confidence and revitalized institutional interest in the token.
From a price action standpoint, XRP is rejecting a massive support zone making it appealing for short-term and long-term investors.
This week, we explored XRP, the native asset of the Ripple network — a global payments solution designed for speed, scalability, and cost-efficiency. Bridging traditional finance and blockchain, XRP is streamlining cross-border transactions and reshaping the future of global remittances.
Thanks for tuning in to this week’s coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
