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Ripple’s Chief Technology Officer (CTO), David Schwartz highlights XRP’s capabilities and its role in generating passive income.
Ripple’s CTO recently made a statement regarding XRP token’s capabilities and its significance in passive income generation. Based on the crypto community’s discussion, mainly on the XRP ledger’s automated market maker (AMM), Schwartz offered an opinion on the token and compared it with long-term Bitcoin (BTC) performance.
Ripple; The Passive Income Generator
On March 11, David Schwartz took to the X (formerly Twitter) platform to highlight the capabilities of XRP in generating passive income.
XRP is affected by volatility like most other cryptocurrencies and its trend has been similar to BTC’s past 12-year performance. The statement comes at a time when passive income generation through Decentralized Finance (DeFi) is the latest buzz.
Products like AMM have been gaining popularity recently and were passed in February, offering XRP holders a chance to earn passive income by operating as liquidity providers. Nevertheless, operating as a liquidity provider inherits a few of the risks.
As of January 2024, only 21 validators had voted in favor of AMM and finally got approval in February.
Schwartz figured out the misconceptions surrounding DeFi products and the issues involved, highlighting the need for realistic expectations about returns.
In the post, Schwartz also highlighted the capabilities of AMM in leveraging digital asset volatility to generate passive income along with mitigating the issues related to long-term price fluctuations.
The concept simply offers a sustainable route for income generation and collecting significant returns from ventures.
Schwartz’s motive is to educate the community about digital asset’s potential and maintain a balance between passive income generation and risk management in the highly volatile crypto market.
How Has XRP’s Performance Been So Far
XRPL is one of the oldest cryptocurrency exchange networks developed by Ripple Labs in 2012. The motive was to facilitate transactions on the network by utilizing the internet, XRP currency, and blockchain technology.
Focusing on the current performance, XRP is currently trading at $0.6997, after an upsurge of 11.43% in a day, as per the CoinMarketCap data. The token holds a market cap of $0.6997 and $7,585,848,942 in 24-hour volume.
With a total supply of 99,987,824,103 XRP and a circulating supply of 54,736,825,690 XRP, the token is generating a strong image in the crypto space. XRP’s all-time high was noted at $3.84 on January 4, 2018, whereas the all-time low was recorded at $ 0.002802 on July 07, 2014.
BTC, on the other hand, stands at the price of $71,936.63, after an upsurge of 0.34% in the past 1 day with a market cap of $1,414,623,571,190. The 24-hour volume of BTC is $52,031,633,439.
The coin is performing beyond expectations, hitting an all-time high of $72,850.71 on March 12, 2024, and an all-time low of $0.04865 on July 15, 2010.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
