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- XRP trading volume surpasses 2017 levels, while the price has skyrocketed 38% in the last 24 hours.
- As a result of the price pump, Ripple CTO Schwartz proposes to lower the XRP ledger reserve requirements.
The XRP price is currently on a direct path “to the moon”, at least this is currently the sentiment within the XRP community. After there have been repeated positive signals in favor of Ripple in the legal battle with the US Securities and Exchange Commission (SEC) in recent weeks, investors seem to have lapsed into a “buy the rumors” momentum before the re-listing of XRP becomes official.
At the time of writing, XRP was trading at $1.45 and was up 38% over the last 24 hours. The weekly chart is up a whopping +153%, while the monthly chart is up +223%. With a market cap of $65.8 billion, XRP is now back in 4th place by market cap – behind Bitcoin, Ethereum and BNB.
Reasons for the XRP price rally
As CNF reported, various news may have contributed to the current market sentiment. Among them was a rumor that Coinbase was preparing to relist XRP. A community member discovered several lines of code in the Coinbase Pro API that hinted at this. In addition, Ripple had just scored another victory in court on Friday when Judge Netburn ruled that Chris Larsen and Brad Garlinghouse do not have to produce their personal financial records.
If nothing else, Ripple lawyers have managed to repeatedly expose the SEC’s inconsistency in recent weeks, finding “specific examples” of how the SEC accepted XRP’s non-securities status in meetings with exchanges and hedge funds, without teaching them any better. As analyzed by attorney Jeremy Hogan, there is currently much to suggest that the court may accept Ripple’s “fair notice” defense and deny the corresponding SEC motion.
Due to the current pump, the XRP price has managed to trade above $1.00 for the first time, since 2018. Remarkably, the current trading volume even surpasses that of the bull run in 2017/2018 – and this despite the fact that most crypto exchanges delisted XRP for US customers earlier this year. When XRP was trading at current levels in 2017, it took only 6 days for the price to reach its current all-time high of $3.32.
Volume for #XRP just passed the volume during the 2017/18 bullrun. If true that volume precedes price: moonshot incoming! pic.twitter.com/FyqqvyNIdh
— CryptoBull (@CryptoBull2020) April 10, 2021
Ripple CTO proposes lowering reserve requirement
Meanwhile, the current price pump could also have consequences on XRP ledger reserve requirements. As Ripple Chief Technology Officer (CTO) David Schwartz stated in a tweet yesterday, he will advocate lowering the XRP reserve requirements from 20/5 to 10/2 if the price remains above $1.00 over the next 2 weeks.
If the price of XRP stays over 1 USD for two weeks, I will personally start advocating for a drop in the XRPL reserve requirements from 20/5 to 10/2.
— David "JoelKatz" Schwartz (@JoelKatz) April 10, 2021
The XRP Ledger applies reserve requirements in XRP to protect the shared global ledger from becoming overly large due to spam or malicious use. Therefore, in order to send transactions, an address must hold a minimum amount of XRP that also cannot be sent to another address.
The current minimum reserve requirement for addresses that do not hold other objects in the ledger is 20 XRP. The Owner Reserve is an increase in the reserve requirement for each object that the address owns in the ledger. Currently, this is 5 XRP per object.
