XRP Research Paper Says 98% Of Transactions Don’t Bring Value

The latest XRP Research paper says that 98% of the ripple transactions don’t actually bring value as we are reading further in the Ripple XRP news.

The blockchain was seen as a way to transfer value but according to the new XRP Research paper, many of the top blockchains failed to fulfill this characteristic. The critics of cryptocurrencies claimed that they have no transfer value and said that they are only the vehicles for market speculation.  This isn’t the case for Bitcoin and Ethereum as the research paper published by academics found that the XRP transactions are from non-economic nature. The funny thing is that these characteristics are not acting as a medium for economic value and are based on ‘’high-throughput’’ blockchains.

The blockchain was seen by many as a way to transfer value but the report says that the top blockchains failed to fulfill this idea. The paper titled ‘’We Know What They’ve Been Put Through: Revisiting High Scalability Blockchain Transaction’’ found out that the top blockchains XRP, Tezos, and EOS have only a ‘’small fraction of the transactions used for value purposes.’’ With the extensive research, they found out that 95% of the throughput on EOS was used for the airdrop of valueless tokens, 82% of transactions on the XTZ blockchain was only done to maintain consensus, 2% of XRP transactions resulted in value transfer.

EOS, Tezos, and XRP were seen as monetary phenomena but the authors found that the transactions on XRP and EOS are only a reminiscent of DOS attacks. The analysis wasn’t done for ETH and Bitcoin but the data shows that these two assets are more money than the other ones analyzed by the writers. The analyst from the data firm Messari found that both Ethereum and Bitcoin transfer about $1.5 billion worth of tokens each day.

The twitter account Whale Alert wrote that much of the value transferred on Bitcoin was from wallet-to-exchange while Ethereum’s value transfers can be attributed to stablecoins traded on exchanges in return for DeFi.  Coinfound’s Devin Walsh found that the average on-chain volume of Ethereum’s DAI is $95 million a day. Ethereum’s monetary prospects were corroborated by Adam Cochran where he said that 16 million ETH is in active circulation saying that ‘’ETH is Money.’’

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Finding #19 – Eth IS Money

16.2M ETH is in 'active' circulation meaning in the last 90 days it passed through a payment processor, payment gateway or smart contract (excluding exchange and multisig.)

That means ETH is actually being *HEAVILY* used as money and gas. pic.twitter.com/KpksjxI5dc

— Adam Cochran (@AdamScochran) April 29, 2020