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On December 2, the XRP Ledger executed a major update, reducing its reserve requirements by 90%. Consequently, new users can now fund their wallets with only 1 XRP, down from the previous requirement of 10 XRP.
XRP Reserve Requirements Significantly Lowered
The adjustment to the reserve, which took effect at 10:45 PM UTC, was verified on X by an anonymous XRP validator operator. This reduction is intended to enhance accessibility to the blockchain for users, particularly those who were deterred by the higher initial reserve. It also enables users to utilize XRP that was previously held in reserve accounts.
The owner reserve, which is the amount necessary for account-held items such as NFTs or trust lines, has also decreased from 2 XRP to 0.2 XRP.
XRP Ledger reserves have just been reduced!
Activating an XRP account now costs 1 XRP
Holding a Token Trustline only requires 0.2 XRP
Excess XRP is now available in your account for spending!! pic.twitter.com/zbvw0zLexd— Vet (@Vet_X0) December 2, 2024
The primary function of the reserve system is to prevent spam accounts and limit excessive ledger growth, as noted in the XRP Ledger documentation. However, critics contend that the former requirement hindered adoption, leading developers to advocate for change.
The initiative to lower the reserve began in October, with XRP Ledger developer WietseWind announcing on October 16 that XRPL Labs nodes had been set up to vote for a reduced reserve requirement.
Developers Endorse Reduced Reserves Despite Concerns
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The decision to lower reserves is part of a larger effort to improve accessibility and draw in new users, which are essential for the growth of the XRP Ledger ecosystem.
This reduction in reserves occurs during a time of increased activity for XRP.
The cryptocurrency has experienced growth, reaching $2.65, its highest price since February 2018. This resurgence coincides with optimism in the broader crypto market and ongoing legal disputes involving Ripple Labs, the founding team of XRP.
Ripple Labs is currently engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC), which asserts that XRP should have been registered as a security.
Ripple has challenged these assertions, appealing a $125 million penalty imposed as part of the conflict. Despite these obstacles, XRP continues to rise, indicating investor confidence in its long-term potential.
XRP has also witnessed significant growth recently, surging 30% on Monday and surpassing USDT to become the third-largest cryptocurrency by market capitalization.
Trading at $2.63 at the time of reporting, the token’s value has risen by 77% in a week and over 375% in the past month, with its market cap reaching $137.4 billion.
This growth follows XRP exceeding Solana in market cap over the weekend, demonstrating strong momentum for the cryptocurrency amid ongoing developments.
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