XRP Is Which Coin? Understanding Its Role in Crypto

What Is XRP and Which Coin Does It Represent?

If you're new to cryptocurrency, you might wonder: XRP is which coin and what sets it apart from others in the crypto market? In the world of digital assets, XRP stands as the native token for the XRP Ledger, a decentralized blockchain developed for quick, affordable cross-border payments. Unlike Bitcoin or Ethereum, which function as both currencies and platforms for decentralized apps, XRP specializes in transferring value efficiently across different fiat currencies.

• XRP Token: The digital asset used on the XRP Ledger.
• XRP Ledger: An open-source blockchain designed for high-speed, low-cost transactions.
• Main Use Case: Enabling real-time global payments and liquidity for financial institutions.

Many financial companies and crypto exchanges, including Bitget Exchange, support XRP for trading and transfers, helping to facilitate its wide use. Let’s dive deeper into the background and unique features of XRP so you can understand its position in the crypto ecosystem.

How XRP Differs from Other Major Cryptocurrencies

While people often compare XRP with coins like Bitcoin (BTC) and Ethereum (ETH), it’s essential to know their core differences. Here’s a breakdown in a comparative table:

| Feature | XRP | Bitcoin (BTC) | Ethereum (ETH) | |------------------------|-----------------|-----------------|----------------| | Native Blockchain | XRP Ledger | Bitcoin | Ethereum | | Main Purpose | Global Payments | Digital Cash | Smart Contracts| | Transaction Speed | ~3-5 seconds | 10+ minutes | 1+ minute | | Typical Cost/Tx | <$0.01 | $1-$5 | ~$0.20 | | Consensus Mechanism | Unique: Validator| Proof of Work | Proof of Stake | | Maximum Supply | 100 Billion | 21 Million | Unlimited |

XRP excels at fast, inexpensive transfers, making it a favorite for remittance services, exchanges, and users seeking quick settlements. XRP does not use mining; instead, transactions are validated by a unique network of trusted validators, which also helps keep energy usage extremely low (sources: XRPL.org, Ripple Insights).

Key Advantages of XRP

• Low fees: Transactions cost a fraction of a cent, ideal for frequent payments.
• Speed: Most XRP transfers settle within three to five seconds.
• Scalability: Supports 1,500+ transactions per second, among the highest in the industry.

These features address many of the speed and cost concerns faced by legacy payment systems and even other major cryptocurrencies.

Background: The Origins and Evolution of XRP

Understanding which coin XRP is also requires looking at its history and ongoing developments.

• Creation: Released in 2012 by Ripple Labs, the XRP Ledger and its native coin (XRP) were designed to streamline cross-border payments for banks and fintech companies.
• Development: XRP was not issued through mining; instead, all coins were created at inception. Ripple Labs initially held a significant portion, distributing the rest to individuals and institutions over time.
• Use Case Expansion: Starting as a liquidity solution for institutional payments, XRP is now widely used for retail trading, remittances, and even for NFTs and micropayments on the growing XRP Ledger ecosystem.

Recent Updates and Milestones

• According to a January 2024 Dune Analytics report, the daily average transaction volume on the XRP Ledger has grown over the past year.
• NFT capabilities and sidechains are expanding XRP’s use cases beyond payments (sources: XRPL.org).
• Ongoing regulatory discussions continue to shape XRP’s status in key markets, although most major exchanges (including Bitget Exchange) support XRP trading given its large user base.

Common Questions Surrounding XRP

Here are some trending questions and answers based on what crypto beginners want to know about XRP:

What Is XRP Used For?

XRP is primarily used to:

• Bridge different currencies for global transfers.
• Provide on-demand liquidity for payment providers and exchanges.
• Allow for quick, cheap cryptocurrency transfers between exchanges and wallets, including Bitget Wallet.

Is XRP a Cryptocurrency or a Token?

XRP is a cryptocurrency and the native coin of its blockchain, the XRP Ledger. Unlike tokens built on top of other blockchains (like ERC-20 tokens on Ethereum), XRP exists natively on its own decentralized network.

How Can I Buy and Store XRP?

• Buy: You can purchase XRP on several reputable exchanges. For safety and reliability, beginners are encouraged to use Bitget Exchange due to its user-friendly features and strong security track record.
• Store: Always store your XRP securely. The recommended option is Bitget Wallet, which supports a range of cryptocurrencies and offers robust security.

What Is the Maximum Supply of XRP?

The total supply is capped at 100 billion XRP. Unlike Bitcoin, which releases new coins through mining, all XRP tokens were created from the start. The circulating supply changes only when institutions, like Ripple Labs, release additional XRP from escrow.

Why Did XRP Become Popular?

• Trusted by major banks and payment providers.
• Speed and cost make it ideal for remittances and global corporate settlements.
• Regular protocol upgrades and ecosystem development add new use cases and keep the network modern.

Insights From Blockchain Analytics Platforms

Top analytics platforms offer a glimpse into XRP’s momentum:

• Dune Analytics: Shows rising transaction volume, especially as new payment partners join.
• Glassnode: Tracks wallet distribution, showing steady increase in non-exchange XRP holders, hinting at greater direct user adoption.
• Nansen: Monitors on-chain data, identifying trends in large transactions and regional adoption rates.

These sources reflect strong and growing interest in XRP, not just for trading, but for real-world payment use.

Final Thoughts on XRP and Its Place in Crypto

Now you know XRP is which coin: it’s the native digital asset of the XRP Ledger, designed for fast, affordable, and scalable global payments. With a strong focus on real-world utility, steady updates, and emerging use cases like NFTs, XRP continues to play a prominent role in the cryptocurrency landscape.

If you’re considering exploring or investing in XRP, always use trusted exchanges such as Bitget Exchange and store your coins securely in Bitget Wallet. Whether you’re interested in using XRP for trading, payments, or as a way to learn more about digital finance, it remains a cornerstone coin worth understanding in any crypto journey.