Top crypto analyst Leonidas calls attention to the extremely low fees for moving huge funds on the XRP Ledger (XRPL), referencing several transactions.
Leonidas shared the development in reaction to an X post from Whale Alert regarding a recent transaction initiated by Ripple on the XRPL Network.
Ripple Moves 380M to Unknown Wallet
According to the post, Ripple transferred 380 million XRP worth $915.17 million to the wallet, ‘rP4…xv3.’ Notably, Ripple paid a fee of 0.0005 XRP for this transaction.
Although Whale Alert labeled the recipient address unknown, data from top XRPL explorer Bithomp suggests that Ripple might be the owner. The company activated the wallet with 70 million XRP on October 2, 2023.
Other Subsequent XRP Flows
Shortly after Ripple transferred the 380 million XRP to one of its wallets, Leonidas indexed the subsequent movements of the funds and their total transaction costs.
According to Leonidas, the recipient wallet transferred 200 million XRP worth $486 million to another address, ‘rJq…8nE’. Bithomp data indicates that this transaction required a fee of about 0.000015 XRP.
Afterward, the receiver transferred the entire 200 million XRP ($486 million) in two tranches of 100 million XRP for a total fee of 0.000030 XRP to an unknown blockchain address labeled ‘rN6…jTG’.
Overall, the total cost of moving the $1.88 billion worth of XRP was 0.000545 XRP ($0.0013), according to Leonidas.
XRPL Ultra-Low Fees
The development highlights XRP Ledger as a network that boasts ultra-low transaction fees. It allows users to initiate high-value transactions for a negligible fee compared to other blockchain networks and traditional financial systems.
Last year, The Crypto Basic reported that XRPL ranks among the top blockchains with the lowest transaction fee. Notably, it outperformed Bitcoin, Cardano, Polygon, and Ethereum in this metric.
For context, while users pay an average fee of $0.005145 per transaction on the XRPL, it costs $3.5 to transfer funds on the Bitcoin network and $1.48 on Ethereum.
XRPL Now Cheaper with New Fee Structure
Meanwhile, XRPL validators have been implementing measures to make the network more affordable and accessible to a wider range of users.
As reported earlier, they approved a new reserve fee structure for the network, reducing the fee required to open an XRPL account by 90% from 10 XRP to just 1 XRP. The new structure also drastically reduced NFT and object reserve fees from 2 XRP to 0.2 XRP.
