Binance US Reveals XRP Origins and Technology
Binance US has shared an overview of XRP, including its background, the technology behind it, and its ability to handle high volumes, raising more questions about the possibility of an XRP ETF.
According to an X thread, Binance US noted updates on the Ripple token, including its creation in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto. The exchange also confirmed that the cryptocurrency uses the XRP Ledger Consensus Protocol, which is different from the normal proof of work system used by Bitcoin.
Moreover, Binance US pointed out that the XRP Ledger has the capacity to handle 1,500 transactions per second, showcasing scalability and efficiency.
Ripple Court Victory and Market Reaction
The court stated on August 7 that the sales of XRP by Ripple to retail investors through the exchange were not in violation of the federal securities laws. After the decision, the price rose by more than 30% and touched levels last seen in April. Although this rally has encountered resistance, the overall sentiment towards the cryptocurrency remains bullish.
According to a Coingape analysis, the XRP price has shown a bullish flag, which is setting the stage for a bullish rally.
In addition, data from Santiment indicates a decline in supply on exchanges, suggesting that investors are increasingly holding onto their assets in anticipation of further price appreciation. This trend is complemented by a noticeable uptick in retail accumulation, particularly among holders of smaller amounts, even as some larger holders have reduced their positions.
Speculation Over XRP ETF Grows
In light of these developments, speculation about the launch of an XRP ETF has intensified. Bitnomial Exchange’s recent announcement regarding the introduction of XRP/USD futures contracts has further fueled these discussions.
The contracts, which are to be physically settled and margin-based, reflect the value of 100,000 XRP units. This move is seen as a critical step toward enhancing the accessibility and liquidity in the market.
Consequently, the conclusion of Ripple’s legal battle with the SEC has reinforced the cryptocurrency’s standing, paving the way for regulatory approval of an ETF. As regulatory clarity continues to solidify, the possibility of an ETF launch seems possible.
Conclusion
In conclusion, the recent updates from Binance US on XRP’s origins and technology, along with Ripple’s court victory and market reaction, have sparked renewed interest in the cryptocurrency. The speculation over an XRP ETF has also grown, with some experts believing that regulatory approval may be imminent.
FAQs
Q: What is XRP?
A: XRP is a cryptocurrency developed by Ripple, a company that focuses on cross-border payments and financial inclusion.
Q: What is the XRP Ledger Consensus Protocol?
A: The XRP Ledger Consensus Protocol is a unique consensus algorithm used by the XRP Ledger, which is different from the proof of work system used by Bitcoin.
Q: What is an ETF?
A: An ETF (Exchange-Traded Fund) is a financial product that tracks the performance of an asset or a basket of assets. In the context of XRP, an ETF would allow investors to buy and sell XRP units on a regulated exchange.
Q: Is an XRP ETF likely to launch?
A: The likelihood of an XRP ETF launching is unclear, but the recent developments and speculation suggest that regulatory approval may be possible in the future.
