Ripple, a major player in blockchain, recently transferred 180 million XRP, worth $94 million, in just ten minutes. The reason behind these transactions isn’t clear, but Ripple is making changes to attract non-US investors, which is a big deal.
VC Funding Can Revive XRPL; Here’s How!
A blockchain expert named Santiago Velez talked about how another blockchain, Solana, has grown significantly with the help of big investors. He thinks Ripple could do the same with XRP. By selling some of its XRP to investors outside the US, Ripple could get more money to grow the XRPL ecosystem and build new projects.
Drawing parallels with Solana’s rapid growth fueled by venture capital (VC) investments, Velez proposed a similar approach to invigorate XRPL adoption and development. Notably, Solana has attracted significant backing from renowned VC firms, contributing to its flourishing ecosystem.
Solana has caught the eye of about 47 investors, including big names like Andreessen Horowitz (a16z), Pantera Capital, Coinbase Ventures, and Paradigm. Last December, it got more investment from Cynegetic Investment, but we don’t know how much.
At the same time, the lack of VC participation is hampering the XRPL ecosystem. Velez advocates for Ripple to explore selling XRP to non-US VC firms. By tapping into foreign investment opportunities like Solana, Ripple could also push vital capital into XRPL projects, which can foster innovation and drive adoption.
Ripple’s Chance to Shine
Velez believes that Ripple has approximately 45 billion XRP as of December 2023, and selling it to foreign investors could attract VC funding. But selling XRP in the US is tricky because of the law, so focusing on investors outside the US might be smarter.
The discussion about the current state of the XRP Ledger started when the Minus Wells Crypto YouTube channel host raised concerns about the delay in implementing Hooks, which would introduce smart contract capabilities. Some worry about higher fees and more network traffic, but others think Hooks could open up new opportunities for DeFi on XRPL.
Meanwhile, the XRP community has mixed views on XRPL’s slow growth and its impact on XRP’s performance. While some think this slow growth is linked to the ongoing legal case with SEC, others emphasize the importance of continued innovation to drive XRPL’s growth. Despite challenges, community members remain optimistic about XRPL’s potential, citing examples like Solana’s resilience without legal clarity.