XRP Ledger Cuts Base Reserve by 90% to Boost Network Accessibility

XRP Ledger Reduces Minimum Reserve to 1 XRP Amid Price Surge

XRP Ledger – In a move aimed at increasing network accessibility, Ledger developers have slashed the base reserve requirement for XRP accounts by 90%. The new reserve, which now stands at 1 XRP (roughly $2.68), was implemented on Monday at 10:45 p.m. UTC and validated in ledger 92508417. This adjustment reduces the minimum amount of XRP needed to keep an account active on the XRP Ledger, a key step in facilitating easier access and encouraging more account creation and activity within the network.

XRP Ledger’s Significant Adjustment to Reserve Requirements

The reduction in the base reserve follows a similar adjustment made in September 2021, when the reserve requirement was lowered from 20 XRP to 10 XRP. At that time, XRP was priced around $1. In addition to lowering the base reserve, the reserve increment fee has also been reduced by 90%. Previously set at 2 XRP, the increment fee now stands at 0.2 XRP per additional item an account holds, such as trust lines, offers, or escrows. This move aims to discourage excessive resource consumption while making it more affordable to participate in the XRP Ledger ecosystem.

A Surge in XRP’s Price and Market Activity

The timing of this change aligns with a massive price surge for XRP, which has risen by 448% in the past month alone. As of the latest data, XRP is trading at $2.68 and has become the third-largest cryptocurrency by market capitalization, surpassing Tether (USDT) and Solana (SOL). With a market cap of $153.7 billion, only Bitcoin (BTC) and Ethereum (ETH) have higher valuations, with market caps of $1.9 trillion and $432.9 billion, respectively.

The XRP rally is largely attributed to growing confidence in the project, especially following recent news that the New York Department of Financial Services (NYDFS) is nearing approval of Ripple’s proposed stablecoin, RLUSD. Additionally, the announcement that SEC Chairman Gary Gensler plans to step down in January has bolstered sentiment, as it could pave the way for more favorable regulatory conditions for Ripple and the broader crypto industry.

XRP’s Role in the Future of Crypto and Web3

The momentum behind XRP is seen as a positive sign for Ripple’s long-term positioning. Analysts like Peter Chung suggest that if the XRP community can leverage RLUSD to nurture the XRP Ledger ecosystem, it could further increase the utility of the XRP Ledger and continue fueling growth in the Web3 space. Moreover, market participants are watching closely for spot XRP ETF approvals in the U.S., as several asset managers, including 21Shares, Bitwise, and WisdomTree, have filed applications for these funds.

With XRP making strides in both price and ecosystem developments, the XRP Ledger is poised to play a significant role in shaping the future of decentralized finance.

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