The XRP Ledger Shows Strong Development in Q3
The XRP Ledger (XRPL) has experienced significant growth and development in the third quarter of 2023, according to a recent report by Messari. XRP, the native token of the XRPL, is now the fifth-largest cryptocurrency by market capitalization, reaching $27.8 billion. The token’s market cap has seen impressive growth, increasing by 59.9% year-to-date and recording an 11.9% quarter-over-quarter surge.
One unique aspect of the XRPL is its deflationary pressure on its total supply of 100 billion XRP. Transaction fees on the network are burned, reducing the supply over time. Approximately 10 million XRP have been burned since the inception of the XRP Ledger. However, to counterbalance this burn rate, 1 billion XRP vests to Ripple each month.
The XRPL does not provide rewards or transaction fees to its validators, unlike many other cryptocurrency networks. Validators are incentivized by supporting network decentralization. The Proof-Of-Authority (PoA) consensus algorithm relies on trust between nodes organized through unique node lists (UNLs), contributing to the network’s resilience and security.
NFTs Thrive on XRPL with Notable Growth in Q3
In Q2 2023, XRPL experienced a decline in network activity metrics. However, Q3 witnessed a resurgence, with average daily transactions reaching 1.06 million and active addresses totaling 44,000. NFT transactions showed significant growth, with average daily NFT transactions increasing by 7.3% quarter-over-quarter to 16,700.
NFTs are built into the core protocol of XRPL and do not require smart contracts for creation or transfers. The standardization of NFTs through XLS-20 in October 2022 brought benefits such as royalties and anti-spam features. The XRPL ecosystem has seen steady growth, with 3 million NFTs minted using the XLS-20 standard.
The XRPL’s Continued Growth and Development
The XRP Ledger has demonstrated significant growth throughout Q3 2023, driven by market capitalization gains, regulatory victories, and advancements in network features. With a focus on deflationary dynamics, unique consensus algorithms, and the rise of NFT transactions, the XRPL remains a prominent player in cross-currency and cross-border payments.
Hot Take: XRPL Continues to Evolve and Thrive
The XRP Ledger has shown remarkable progress in Q3 2023, solidifying its position as one of the leading blockchain networks. With impressive market capitalization growth, deflationary mechanisms, and the thriving NFT sector, the XRPL is proving its resilience and adaptability. As it continues to evolve and introduce innovative features, the XRPL is well-positioned to play a significant role in the future of decentralized finance and global payments.
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