XRP/USD: Ripple’s David Schwartz explains why 98% XRP transactions have zero value
- Ripple’s CTO responds to the research of Cornell University.
- XRP/USD struggles to stay above daily SMA50.
According to the research paper published on the website of Cornell University, an overwhelming majority of transactions of XRP Ledger had been pointless and only 2% of all 2% of all XRP transactions led to value transfers.
Ripple’s chief technology officer David Schwartz responded to the criticism by saying that such spam activity was the evidence of the ledger’s speed, affordability and capacity.
I believe it. Transactions are so fast and cheap and the ledger has so much capacity, little incentive not to submit near zero value txns. Not long ago, 50% off all public decentralized ledger txns were on XRPL!
He also added that the majority of such transactions are harmless bots that fight for positions in the order books. Meanwhile, eliminating such spam transactions would come at a cost to everyday XRP traders, he explained.
Some of the transaction spam can be addressed by fixing “quirks” those transactions exploit. But most of it is just that the ledger is so cheap to use. Raising the price will discourage the spam but also discourage valuable transactions. A decentralized, public system that was designed from the ground up to make censorship as difficult as possible will always have this problem unless transactions are expensive. What are you willing to give up to resolve a problem that is not doing all that much harm?
XRP/USD: Technical picture
XRP/USD managed to recover above daily SMA50 at $0.1924 after a collapse to $0.1780 during Sunday’s mega sell-off. At the time of writing, the coin is changing hands at $0.1927, down 2.7% on a day-to-day basis and 2.3% since the beginning of the day.
From the technical point of view, a sustainable move $0.2000-$0.2030 area is needed for the upside to gain traction. This resistance zone Is created by a psychological level and 38.2% Fibo retracement for the downside move from February 2020 high. Once it is out of the way, $0.2100 and $0.2150 (daily SMA100) will come into focus.
On the downside, if the above-said daily SMA50 Is broken, the sell-off will continue towards the next support at $0.1840 (the lower line of the daily Bollinger Band) and the Sunday’s low at $0.1780.
XRP/USD daily chart
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Author
Tanya Abrosimova
Independent Analyst
