5 Bullish Facts About XRP That Every Investor Needs to Know

• The XRP Ledger is a unique protocol with 5 distinct positive features.
• Top analyst names XRP one of the most innovative digital currencies around.

The fourth largest cryptocurrency, XRP, has been operating on the frontline in the global crypto ecosystem for years. Over the years, the coin has attracted both strong supporters and skeptics. 

In a major development, Panos Mekras, co-founder of Anodos Finance, has shared some insights on why XRP and the XRP Ledger (XRPL) stand out as one of the best digital assets ever known to humans.

Here are five key facts every investor should know.

XRP Operates on a Decentralized Network

In recent years, several debates among critics have hinged on whether XRP is truly decentralized. 

For example, some crypto experts and influencers claim that Ripple Labs controls it, but Mekras dismissed this idea, stating that XRP runs on a decentralized system.

Image Source: Panos Mekras on X

In addition, unlike Bitcoin, which relies heavily on miners, XRPL uses a consensus mechanism. Under this mechanism, independent validators confirm transactions on the network.

This structure prevents any single entity from taking control, making XRP reliable and resistant to manipulation.

XRP Supply Decreases Over Time

It is worth mentioning that many digital assets struggle with inflation as new coins are released into the market. 

However, XRP’s deflationary model has prevented the token from seeing ridiculous declines despite the volatile crypto markets. Furthermore, each transaction on the XRP network burns a small amount of tokens, which permanently reduces supply.

This is why, as XRP utility increases, fewer coins will remain in circulation. This scarcity could drive up value over time, making XRP attractive to investors looking for assets with long-term growth potential.

The XRP Ledger Has a Built-In Decentralized Exchange

Another major benefit spotlighted by Mekras is the operational model of Decentralized exchanges (DEXs) on XRPL. DEXs let users trade assets without relying on third parties. XRPL had a DEX as early as 2012, making it one of the first in the industry.

This built-in exchange allows seamless digital asset trading, improving security and reducing transaction costs. Notably, this feature strengthens XRP’s role as a fast, efficient financial tool for investors.

XRPL’s Security Reduces Risks

For most people, blockchain security is a major concern. However, XRPL’s design reduces risks. For instance, attributes like NFTs are integrated into the system, avoiding common smart contract vulnerabilities.

Mekras stated that this mechanism protects users from issues such as wallet drains and contract failures. Overall, this makes the XRPL a safer platform for transactions.

XRPL Supports Tokenization and Real-World Assets

Tokenization is a growing trend in blockchain, and XRPL was one of the first to introduce it. Businesses can use the ledger to issue and transfer assets like stablecoins and real-world assets (RWAs).

As previously mentioned in our report, tokenization remains at the heart of Ripple’s vision for the future of XRP, with plans to power this innovation with the XRPL.

In addition, this particular tokenization feature makes XRP more than just a digital asset. It is a foundation for financial institutions looking to streamline transactions. In a recent update, we covered the announcement of Ripple Labs’ strategic partnership with Portuguese currency exchange provider Unicâmbio. 

The collaboration intends to facilitate instant cross-border payments between Portugal and Brazil using Ripple Payments. These updates have fueled a mild rally in the price of XRP.

As of this publication, XRP was trading at $2.39, up by over 2% in the last 24 hours.