Ripple developers receive a new grant, but what role does XRP play?

RippleX, the Ripple [XRP] department that provides its developers with tools and support for infrastructure development, announced a new grant for its developers. The $2.6 million grant would be divided among 25 teams from various continents.

The funds will be used to develop projects on the Ripple roadmap, according to Julia Heitner, who made the announcement for the RippleX team via a blog post. Despite its issues with the SEC, Ripple has previously been responsible for funding over 100 projects.

All eyes on XRPL

The recent one, called the “Wave 4” would focus on sustainability projects and infrastructural development, led by the XRP Ledger (XRPL) team, Heitner revealed. She wrote,

“The XRPL Grants program is committed to supporting projects and solutions that are focused on sustainability and climate change by leveraging the carbon-neutral XRP Ledger.”

Recall that the XRPL team was also the one that headed the NFT development on the Ripple blockchain. Now, it is faced with proving more open-source solutions. Meanwhile, the NFT integration on the Ripple chain has not yielded much fruit.

According to Santiment, the NFT trades volume had fallen to $108,000. But as of 12 January when RippleX communicated the development, the volume was as high as $1.21million. This might be a circumstance of quick buying and selling amid the disclosure. The dump also spread its wings to the XRP on-chain volume. At the time of writing, the XRP volume in the last 24 hours had decreased to$1.06 billion.

XRP NFT volume and on-chain volume

Source: Santiment

Traders losing and opting out

The above state of the volume suggested that the XRP tokens that moved within the Ripple network were minimal. Despite the decrease in XRP exchange, what else has the token retail traders been up to?

Details from the on-chain platform revealed that the BitMEX funding rate was 0.01% even though it had initially surged to 0.073%. This implied that the periodic payments made by traders to open contract positions in the derivatives market had decreased.

Short-term investors who still held on to the token despite recent gains were at risk of slight losses. This was because the daily on-chain profit had reduced to 497.97 million.

Ripple funding rate and daily on-chain profit

Source: Santiment

However, RippleX, via the same blog post, noted that 2023 would not be the last round of funding. The communique read,

“In addition to new focused calls for proposals to be announced throughout 2023, XRPL Grants continues to encourage applications for sustainability focused projects, and projects from diverse contributors.”

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