Ripple News : XRP Shatters Traditional Transaction Fee Norms, Outperforming BTC, ETH, ADA, and MATIC

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Recent data reveals that the XRP Ledger (XRPL) is disrupting the financial sector by offering incredibly low transaction fees. With the democratization of finance as its rallying cry, XRPL has achieved what many blockchain networks aim for but fail to deliver—economic efficiency. According to the latest figures, the average transaction fee on the XRPL is a mere $0.0002. This means one can execute up to 5,000 transactions for just $1.

For context, it’s worth noting that a $1 bill won’t even get you a domestic wire transfer in a U.S. bank. The average fee for such a transaction stands at a whopping $30, as reported by Forbes.

Ethereum and Bitcoin: The Cost of Legacy

Although Bitcoin and Ethereum offer significant advancements over traditional finance systems, their transaction fees leave much to be desired. Data from blockchain analytics platform Ycharts shows that Bitcoin’s average transaction fee currently hovers around $2.070. Under these conditions, not even a single Bitcoin transaction can be initiated for $1.

Similarly, Ethereum, despite its transition to a Proof-of-Stake (PoS) model last September, has an average transaction fee of $0.639. Essentially, $1 will allow you to make just one transaction on the Ethereum network. The leftover $0.361? That could fuel up to 1,805 XRP transactions, dramatically underscoring the fee disparity between the two.

PoS Networks ADA and MATIC: Low but Not Low Enough

Cardano (ADA) and Polygon (MATIC) have been built on the PoS framework from their inception, ostensibly to offer lower transaction fees. While their fees are indeed lower than those of Bitcoin and Ethereum, they fall short of XRP’s affordability.

Data from Cardano Explorer reveals an average transaction cost of 0.17 ADA ($0.042). Therefore, you could initiate 23 ADA transactions for $1, outperformed by XRPL’s 5,000 transactions. Polygon, a layer-2 scaling solution for Ethereum, fares a bit better with an average fee of $0.0007. Still, at 1,428 transactions for $1, it remains 3.5 times more expensive than XRP.

Crypto Community Responds

John Deaton, Lawyer & Founder of Cryptolawus, tweeted that Ripple has the capability to revolutionize traditional money transfer systems like MoneyGram and Western Union. The tweet emphasized Ripple’s ability to conduct international transactions for less than a penny, challenging the conventional fee structures that can go as high as 15%.

Bill Morgan, an Australian lawyer, also highlighted the openness of the XRPL for project development, especially in the retail sector, and its role in making cross-border payments cheaper through its On-Demand Liquidity (ODL).

The tectonic plates of finance are shifting, and XRP is emerging as a potent force, shattering preconceived notions about transaction fees. With an unbeatable record of offering 5,000 transactions for $1, it’s clear that the XRP Ledger is not just competing—it’s dominating.