Ripple is about to spend nearly $1 billion in XRP (CRYPTO:XRP) to improve its blockchain.
Even with the lawsuit, it is embroiled in, Ripple Labs is still finding time to develop and improve XRP (CRYPTO:XRP). In a recent press release, the company revealed that it would spend one billion XRP–nearly a billion dollars–incentivizing developers to build apps on the XRP blockchain. The money will go to a variety of initiatives, including:
- Decentralized finance (Defi)
- Diversity and inclusion
- A several months-long Bootcamp designed to educate developers on the XRP ledger
Collectively, these initiatives could take XRP to new heights, with a robust developer community working on countless new initiatives. In this article, I will explore some things Ripple is doing with its nearly $1 billion investment, and how they could help XRP.
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$6 million already awarded
Funding developers is nothing new for Ripple.
To date, the company says that it has already awarded $6 million in funding to developers working on XRP applications. The company says that the funding has helped develop more than 50 open source projects on XRP’s ledger.
The one billion XRP being invested now takes things to new heights. With XRP currently at about US$0.84, this investment is much larger than any Ripple has taken on to date. Potentially, hundreds of worthy projects could be funded. In the next section, I’ll explore some of the use cases that may be funded by Ripple Labs’ investment.
Use cases Money for nothing pay for Quality work Delivered
With nearly $1 billion in funding, XRP developers can potentially build an almost unlimited number of applications. Some of the ideas floated in Ripple’s own press release were:
- NFTs. NFTs are non-fungible tokens that usually point to digital assets like images. They were extremely popular in 2021, and helped Ether book an enormous gain that year. This year, NFTs are declining somewhat in popularity, but XRP NFT projects could help draw some attention to the XRP token.
- Federated side chains. These are extra blockchains that operate on top of the main blockchain, helping to increase data transfer and improve transaction times. This concept appears similar to the “shard chains” that Ethereum developers are currently working on.
Either of these projects could pique interest in XRP and take the token higher. Already, Ripple is getting a lot of attention due to its lawsuit and its rapid adoption by the banking industry. With new blockchain projects being developed, it could potentially rise even further than it already has. Unlike Bitcoin and Ether, XRP still hasn’t retaken the highs it set in 2017. With an active Defi community, it could potentially see renewed interest and rise to levels never seen before.
Ripple (XRP) turned down and slipped below the 20-day EMA ($0.81) on April 5. The selling continued today and the price broke below the 50-day SMA ($0.78).
XRP/USDT daily chart. Source: TradingView
The RSI has dropped into the negative territory and the 20-day EMA has started to slope down, suggesting that bears have a slight edge. If the price sustains below the 50-day SMA, the XRP/USDT pair could drop to $0.70. This is an important level for the bulls to defend because if it gives way, the decline could extend to $0.60.
On the contrary, if the price turns up from the current level and rises above the 20-day EMA, the bulls will attempt to propel the pair above the 200-day SMA ($0.89).