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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Chainlink to present buy opportunity before LINK rises to $38

Chainlink price could create one of the most sought-after bullish entry setups in Point and Figure analysis: the Bullish Catapult. However, buyers must keep Chainlink above a certain price threshold, or the pattern will be invalidated.

More ChainLink news

SafeMoon bulls look for a breakout to $0.0000024

SafeMoon price is one of the best performers of the day, with moves as high as 13% above the open. While the breakout above $0.0000019 is bullish, momentum must be maintained to push SafeMoon above the Cloud to create clear bullish ...

More SafeMoon news

Top 3 Price Prediction: Investors prepare to sell on ETF news

Bitcoin price has historically sold off during the opening of any new derivative futures contract. Will this behavior continue? Ethereum price struggles to cross above the critical $4,000 level and may be held back pending any Bitcoin weakness.

More Bitcoin news

Cardano price to tread water soon, breaking below $2

Cardano price sees bears pushing price action further to the downside. ADA price has tested $2, but with lower highs, Cardano price is getting squeezed lower. The pivotal level at $1.89 could make or break the uptrend. Cardano price has been trying to recover ...

More Cardano news

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP