XRP continues to play a critical role within Ripple‘s payments ecosystem, according to new research highlighted by independent analyst SMQKE. His findings provide further insight into the integral position of XRP in the operation of RippleNet and the XRP Ledger (XRPL).
SMQKE details XRP’s dominance in RippleNet
SMQKE, a researcher specializing in blockchain payments, shared recent documentation that underscores how RippleNet, Ripple’s global payment network, fundamentally relies on XRP. RippleNet is a system designed to connect banks, payment providers, and digital asset exchanges for seamless cross-border payments.
According to the attached research, XRP is not just a supplementary asset but a central element in Ripple’s payment solutions, including the Ripple Payments product. The documents emphasize that as Ripple Labs builds out its international payment infrastructure, XRP operates as a native digital asset within the network, serving as a potential bridge between diverse currencies.
Analysts highlighted Ripple’s efforts to position XRP as a neutral bridge asset, supporting interoperability among different currencies on XRPL’s decentralized exchange. Current XRPL documentation also defines XRP as the primary medium of exchange on the network, facilitating efficient liquidity and transaction processing.
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RippleNet relies extensively on XRP for value transfer across its ecosystem, enabling smoother currency conversions and efficient payments for its institutional clients. The technological foundation of Ripple solutions is specifically built around the utility of XRP within the XRPL framework.
XRP payment volumes outpace all other assets
SMQKE referenced a study of ledger activity between October 1, 2019, and April 30, 2020, which highlighted that XRP overwhelmingly led payment volumes on the XRPL. The study recorded approximately 125 billion XRP processed through payment transactions over the seven months, which amounts to an average of 586 million XRP daily.
In examining the transaction flows, the analysis identified global exchanges as major contributors. Binance, recognized as one of the world’s leading digital asset exchanges, sent 15.2 billion XRP and received 14.5 billion XRP within this period.
The research also noted that around 7% of XRP’s payment volume was connected to Ripple-related transactions, largely driven by the company’s monthly escrow releases.
| Period | Total XRP Processed | Daily Average | Binance Sent | Binance Received |
|---|---|---|---|---|
| Oct 2019–Apr 2020 | 125 billion XRP | 586 million XRP | 15.2 billion XRP | 14.5 billion XRP |
XRP is, by a significant margin, the most transacted asset on the ledger during the observation window, far surpassing any other issued token in volume.
XRP’s native position on the XRPL
SMQKE maintains that XRP’s dominance stems from its foundational role as the network’s native asset. While the XRP Ledger architecture allows a variety of issued tokens and other digital currencies to circulate and function, the research and official documentation confirm that XRP is the primary currency used for liquidity, payments, and protection against transaction spam.
This distinction does not preclude other tokens from being used within the ecosystem, but none currently rival XRP’s usage or technical significance. Ripple continues to describe its product suite—payments, custody, and its planned stablecoin—as depending on both XRP and the XRPL technology for core functionalities.
Ripple is a global payments technology company known for developing solutions that streamline cross-border payments using blockchain.
Mini dictionary: XRPL (XRP Ledger), a decentralized blockchain focused on fast, low-cost payments, using XRP as its native asset to enable on-ledger transactions and facilitate bridging between different currencies.
Overall, the recently surfaced research reaffirms XRP’s core status in RippleNet and the broader XRP Ledger as the dominant asset for payment volume and ledger activity.
