XRP eyes gains, Ripple Army debates need for DAO and decentralization on XRP Ledger
- XRP Army, community members, and validators debate the need for a DAO for governance on XRP Ledger on X.
- Ripple noted a 25% increase in active addresses in the first two days of September as market participants show interest in altcoin.
- XRP gains over 1.30% on Monday, steadies above $0.55 at the time of writing.
Ripple (XRP) Army constitutes of community members that hold the token and entities that run validator nodes for the altcoin. The community members are currently debating on X the benefits of a Decentralized Autonomous Organization (DAO) on the XRP Ledger.
DAOs typically put governance in the hands of the community, which further decentralizes the chain.
Daily digest market movers: Ripple Army debates need for DAO, further decentralization
- XRP community member behind the X handle @DarkhorseDNME4 shared thoughts on further decentralizing the XRP Ledger. The validator behind the X handle @Vet_X0 commented and added insights to the questions raised by the XRP Army member.
- Three key issues are being debated: whether there should be a DAO on the XRP Ledger, whether projects building on the Ledger and issuing tokens should pass on the benefits to token holders, and that XRP holders should gain from the actions of the payment remittance firm or the Ledger.
- A DAO is a digital organization that decentralizes decision-making and governance on a chain, and this would take power away from the payment remittance firm and likely make the future of the Ledger more decentralized.
- XRP Army has supported the firm through its lawsuit with the US Securities & Exchange Commission (SEC) and celebrated key milestones like the launch of Automated Market Maker (AMM) on XRP Ledger. However, @DarkhorseDNME4 argues there has been little to no value addition in terms of the token’s price, in a recent tweet on X.
As an XRP holder I'm going to give my absolute truth to you @Ripple @bgarlinghouse @JoelKatz @MonicaLongSF @Vet_X0 for the last 2 years here in X I have highlighted, your bot use, your XRP-0, prisma, Your Net neutral ODL transactions, your reliance on Centralised…
— ĐΛRKHØRSΞ™ (@DarkhorseDNME4) September 1, 2024
- On-chain data from crypto intelligence tracker Santiment shows that Ripple has noted nearly 25% spike in active addresses between August 31 and September 2. The first two days of September recorded a spike in address activity, meaning higher participation from the crypto community and likely an increase in interest among traders.
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XRP active addresses (24-hour)
Technical analysis: XRP could extend gains and target $0.6217
XRP is in a multi-month downward trend that started with the July 13, 2023, top of $0.9380. Since then, XRPLedger’s native token extended its decline to the July 5 low of $0.3823. At the time of writing, XRP holds steady above the $0.55 area and could extend gains by 12% to a key resistance level at $0.6217.
XRP has tested $0.6217 as resistance several times between April and August. The psychologically important $0.60 level could act as a resistance for the altcoin in its path to $0.6217.
The Relative Strength Index (RSI) reads 44.03, below the neutral level, showing a lack of positive momentum.
XRP/USDT daily chart
A daily candlestick close below Sunday’s low of $0.5434 could invalidate the bullish thesis. In that scenario, XRP could sweep liquidity at the lower boundary of the Fair Value Gap (FVG) between $0.5188 and $0.5785.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
