Forbes Criticizes Ripple for XRPL’s Role in Global Finance

A recent Forbes article shows that the XRP Ledger (XRPL) alongside 19 other blockchains was ineffective, going as far as labeling them as “zombie chains”. 

The research suggests that despite existing in the blockchain ecosystem for over a decade, these networks, including XRPL, require greater utilization. Forbes’ analysis focuses on the XRPL in particular, despite the network showing activity of over 5.1 million wallets indicating sustained interest among users. 

Forbes’ report points out on XRPL’s limited ability to influence global inflows, questioning its relevance in the cross-border payments industry. Furthermore, the network cannot challenge SWIFT, a prominent player in cross-border transactions. Despite Ripple’s efforts through its ODL product, which reportedly handled significant remittance volumes, Forbes remained skeptical regarding XRPL’s effectiveness in replacing traditional systems. 

In addition, Forbes stated that XRPL lacks utilization, despite its current valuation of over $36 billion. The publication highlights the low transaction fees on the XRPL indicating its limited use, with total costs in 2023 amounting to $583,000. Forbes believes that it is an indication of the network’s low performance, despite the fact the XRPL’s low fees are designed to deter spam transactions, not as a primary revenue source. 

However, the article failed to emphasize that this minimal cost is a result of the XRP Ledger’s exceptionally low fees compared to traditional payment systems. The XRPL imposes an average fee of only $0.0002 per transaction, in contrast to SWIFT, which charges anywhere from $10 to $100 for a wire transfer.

In conclusion, the article has sparked criticism from various figures within the crypto community. Critics have argued that Forbes’ analysis needs more depth as it fails to acknowledge XRPL’s role in enabling efficient and cost-effective cross-border payments.