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Ripple Price, XRP History and Everything You Need to Know

By Mohamed Saber Farrag - Oct 11, 4:00 AM

Summary

  • XRP or Ripple is a decentralized blockchain digital currency

  • It was designed to facilitate cross-border interbank transactions worldwide

  • Since its launch, XRP price has had its highs and lows

  • Some benefits XRP users enjoy include fast transactions, low cost of transactions, and easy to send across borders

  • The Rain app makes XRP trading easy

  • Rain facilitates users to buy, sell, trade, and store XRP through a secure licensed portal

  • Users get the best XRP price in the region through Rain.

XRP or Ripple is a blockchain developed by a team of developers; Arthur Britto, Jed McCaleb, and David Schwartz (executives of Ripple Labs) in 2011. It hit the market in 2012, and the XRP price then was 0.01USD. Officially, this protocol launched in 2012, soon after the team formed the company named “OpenCoin.” Chris Larsen led the team as the CEO. Not too long after this, the company changed its name to Ripple Labs Inc. After a while, the company shortened its name to Ripple in 2015.

Although Ripple and XRP are linked, it is important to mention that they are two separate entities operating independently of one another. While XRP is a digital asset used for online payments, microtransactions, and remittances, Ripple is a fintech (or financial technology-based) company that builds payment solutions.

A Quick History of Ripple (XRP) Cryptocurrency

In 2012, the founders created one hundred billion XRP tokens before they launched the project. They (i.e., Ripple) retained 80 billion tokens with the intent to fund future developments and operations. Then, the founders shared the remaining XRP among themselves.

Whenever Ripple decides to release XRP coins from the pre-mined stash, the coins enter the market in the form of block rewards. This is unique to XRP – other cryptocurrencies do not operate like this.

In 2017, Ripple transferred 55 billion XRP tokens to Escrow. The objective of doing this was so that Ripple could sell as much as 1 billion tokens per month. This helped improve the predictability and transparency of XRP in the market.

By the end of the selling period, all unsold tokens would return to the escrow account for redistribution in the next selling period. In the past 32 months, Ripple released 32 billion XRP coins from escrow, of which 28.8 billion returned.

By 8 April 2021, escrow reportedly holds 47.8 billion XRP tokens.

How Ripple Works

To facilitate cross-border interbank transactions worldwide, Ripple created the XRP ledger. It is a permissible peer-to-peer servers’ network that sustains XRP operations. All XRP transactions (execution and settlements) take place via the ledger.

The objective of creating this cryptocurrency token was for it to serve as a bridge between fiat currencies that were hard to match. This means that if no network was willing to trade shekels for shillings, then the users of shekels could sell their shekels for XRP, and then use this token to buy shillings.

The Ripple Consensus Algorithm is the main system supporting the XRP ledger. It differs from proof-of-stake or PoS and proof-of-work or PoW mechanisms. However, unlike miners, participants of this system do not get rewards for securing the network. Upon agreeing, a new “ledger version” is created and validated. It is not possible to change the content of the block once created. This allows servers on the network to store the entire history of the ledger.

To have access to the XRP ledger, the applications connected must run on JavaScript API (application programming interface). The ledger is open source.

XRP also provides on-demand liquidity or (ODL), which is possible through Ripple's xRapid cross-border payment service. It allows the transfer of funds from any fiat currency to XRP and vice-versa. This is necessary for Ripple’s flagship RippleNet service. RippleNet connects hundreds of financial institutions worldwide through a singular API, which makes moving money cheaper, faster, and more reliable.

Before 2019, RippleNet had three separate products, xCurrent (real-time settlement solution), xRapid (a liquidity solution) and xVia (a payment API).

Ripple Transactions

Using the RippleNet service, it takes under 5 seconds for the XRP ledger to document and settle payments. It can easily handle more than 1500 transactions each second. To cover transaction fees, a unit of XRP (10 drops worth 0.0001 XRP) are destroyed. The transaction cost increases as the load on the network increases. This aims to disincentivize the network during busy hours.

Ripple (XRP) Price History

XRP launched in August 2012. The XRP price then was 0.01 USD. The XRP price stayed steady until November 2012 when it increased to 0.04 USD. However, within the month, it dropped to 0.03 USD and was down to 0.01 USD by February 2013. In May 2013, it went to Zero, and 0.01 by July. The Ripple prices had continuous highs and lows until April 2017, when the XRP price increased to 0.05 USD. In May 2017, the Ripple price increased to 0.25 USD and further increased to 0.26 USD in June.

Later it dropped to 0.17 USD in July. By December 2018, the XRP price increased to 2.28 USD, but by January it had a fall to 1.14 and eventually dropped to 0.51 USD by March 2018. In April 2018, the price was 0.87USD and further dropped to 0.34 USD in August 2018. September 2018 was when the Ripple price increased to 0.57 USD, and throughout 2019- November 2020, the prices had their highs and lows. In November 2020, the XRP price increased to 0.61 USD but dropped to 0.21 by December 2020. In March 2021, the XRP price increased to 0.57 USD and further increased to 1.4 USD by April 2021. By September after some ups-and-downs, it rose to 1.39 USD.

Benefits of Ripple Cryptocurrency

Here are some of the major benefits of using Ripple as a preferred payment technology:

·        Low cost of transactions (which is as low as 0.0001XRP, i.e., a fraction of a penny).

·        Quick transaction process, which takes an average of 5 seconds

·        Banks can use XRP to facilitate currency trades. With only XRP one can exchange various currencies at a low price.

·        Decentralized currency independent of any government or financial organizations and their control

How is the XRP Network Secured?

Like other cryptocurrencies, XRP is a decentralized platform. It works on blockchain technology and is a very secure system. RippleNet ensures proper entries of all transactions in the XRP ledger and is difficult to hack. In eight years, there have not been any incidents that are the reason for concern.

How to Buy XRP in GCC and Turkey

Buy XRP from a licensed cryptocurrency exchange. Rain is one of the best XRP exchanges in the region. At Rain, you can get the best XRP price in the market. Moreover, you can exchange other fiat pairs such as USD, BHD, AED, OMR, KWD, SAR, and TRY.

What is an XRP Exchange?

An XRP exchange is a digital marketplace or online currency exchange platform, where cryptocurrency traders can buy and sell bitcoins using various fiat currencies.

Buy XRP at the Best Price

Buy and sell at the best XRP price through Rain. You can be sure of using your secure wallet. Rain makes the process of trading XRP fast and easy. In addition, you can get customer support 24/7.

Rain - A Reliable XRP Exchange

Rain is licensed by the CBB (Central Bank of Bahrain) to serve as a crypto-asset brokerage and custodian in the Middle East.

Start buying or selling cryptocurrencies in GCC or Turkey through Rain today. For more information, feel free to contact support.

Rain is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider. We are headquartered in the Kingdom of Bahrain

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