- 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.
— Santiment (@santimentfeed) October 7, 2022
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.
Source: https://www.thecoinrepublic.com/2022/10/08/xrp-ledger-clocks-highest-network-growth-in-3-months/