- Highest number of new XRP wallets registered in three months.
- After the UNL upgrade, Ripple has less control over XRP Ledger.
Cryptocurrency analytics firm Santiment reported the highest network growth since July in the XRP ledger. This comes amid a rise in Ripple’s (XRP) price over the past few weeks.
As on Friday, 2,773 wallet addresses were created on the Ripple blockchain. The jump implies a 5% rise in XRP price over $0.52. Santiment described the movement as a mild decoupling from the crypto market
The UNL upgrade
With the aim of enhancing decentralization, upgrades are undertaken which modify the
control over processes or essential services.
This comes amid the Unique Node List (UNL) upgrade in which validators were replaced
and added. An Estonia based non-profit XRP Ledger Foundation tweeted that a Ripple
validator was replaced by a new Ripple validator while a new validator, xSPECTAR was
added.
The upgrade reduces Ripple’s control over the blockchain. This was done to decrease
multiple validators from the same entity. There are 35 validators validating public
transactions on the chain; out of which Ripple controls only 2 (5.8%).
The SEC v Ripple case
The Securities and Exchange Commission filed a lawsuit against Ripple in 2020. SEC charged Ripple with the sale of unregistered securities offerings. Two top executives were named in the filing. Ripple chose to defend itself and took the financial watchdog head on. SEC’s attempt at painting Ripple and its leaders offenders does not look like a water-tight case. Things look nicer for the defendants with each passing day.
The latest development in the case is Ripple’s objection to an SEC motion which
prevented 2 third party entities – Tapjets and I Remit – from filing new briefs in court.
The court granted these firm amicus curae status.
SEC v Ripple will be remembered as a landmark case. If it isn’t a stretch, it may be right
to call it the Roe v Wade case of digital economy. While it is not certain whether there
will be more regulatory clarity post case. However, SEC’s jurisdiction in this space will be
significantly influenced if it is cleared whether XRP is a security (or not).
XRP prices will alter significantly, after the case outcome is announced. Its price has
been fluctuating and the decoupling effect can be attributed – at least partially – to the
SEC lawsuit.
While XRP was not a hit among the intended customers – financial institutions and
governments – the XRP ledger was recognized widely. This gave the leaders hope that
eventually, XRP’s potential to disrupt international finance will be appreciated.
XRP was designed to reduce costs and increase speeds in international financial
transactions. It was touted as a replacement for currencies from small nations for trade
settlements.Â
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