Key Points

• XRP cannot be mined as all 100 billion tokens were pre-mined at launch.
• Instead of mining, XRP transactions are verified through the Ripple Protocol Consensus Algorithm (RPCA).
• Users can acquire XRP via exchanges, airdrops, liquidity rewards, or faucet giveaways.
• XRP’s fixed supply, fast transactions, and low carbon footprint make it efficient but non-passive for miners.

XRP is not a cryptocurrency that can be mined in the traditional sense of the word. This is because all the 100 billion XRP tokens that are part of the protocol’s maximum supply were already pre-mined at the time of token launch. 

Even though mining is impossible, there are several alternative ways to acquire XRP tokens. You will read about it in detail in this article. 

What is XRP?

XRP is the native token of XRP Ledger. This protocol was founded in 2012.  It is a low-cost, highly scalable, and fast decentralized protocol, and it works as an open-source, permissionless entity. With the blockchain technology used, XRP settles transactions fast, i.e., within 3-5 seconds, and can scale nearly 15,500 transactions per second, all at a low cost of about $0.0002 per transaction. 

XRP Ledger is primarily used for five cases, namely payments, tokenization, DeFi, CBDCs, and stablecoins. All the transactions on XRP are validated using a Federated Consensus Mechanism. 

Here are the basic metrics that show the current status of XRP in the market.

Price: $2.48

Market Capitalization: $149.31B

24-hour Volume: $5.39B

Total Supply: 99.98B XRP

Maximum Supply: 100B XRP

Circulating Supply: 60.01B XRP

Why is XRP Mining Impossible? 

XRP mining is impossible simply because all the XRP tokens available were pre-mined and already exist. The maximum supply of XRP is 100 billion, all of which already exists. Instead of mining new coins, the existing XRP tokens can be validated using the unique consensus algorithm, which eliminates the need for mining.

Ripple Protocol Consensus Algorithm (RPCA) is used for validating XRP transactions. The specialty of RPCA is that not every node is used to achieve consensus. Rather, only a set of trusted nodes from the Unique Node Lists (UNL) is used. This process is way faster than the traditional proof-of-work consensus mechanism used by Bitcoin and Ethereum. 

How to Acquire XRP Tokens? 

There are several other ways to acquire XRP tokens. 

• You can buy XRP from a decentralized or centralized exchange by swapping it for any crypto or fiat currency, such as Bitcoin, Ethereum, USD, etc. Binance, Coinbase, and KuCoin are some of the exchanges where XRP is traded.
• You can acquire XRP through airdrops, which are intended to be promotional methods for the protocol. 
• You can provide liquidity for XRP tokens on exchanges and earn the tokens as transaction fees.
• You can also acquire XRP by taking part in the giveaways conducted by crypto faucet websites. 

How does XRP’s Non-Mineable Feature Affect the Investors? 

The fact that XRP is non-mineable has several implications for the investors. 

• Since XRP has a fixed and predictable supply, the chances of inflation are nil, unlike Bitcoin or Ethereum. This is because no new coins will be added to the total supply through mining. The value of this token will remain intact in the long term. 
• The consensus mechanism used by the XRP ledger allows for fast transactions. This makes XRP an operationally efficient protocol. 
• As there is no need to mine XRP and therefore, its carbon footprint is very low compared to Bitcoin. Thus, XRP is environmentally friendly. 
• A downside of XRP is that investors cannot make any passive income from XRP mining. 
• Some investors criticize that the XRP protocol is more centralized as the total supply and release schedule were predetermined, giving less authority to the investors or other stakeholders. 

Final Thoughts 

XRP’s feature of being a non-mineable token makes it unique among other cryptocurrencies. This feature of the token has several impacts on the investors. Even though it is non-minable, you can purchase it from exchanges or use other methods for acquiring it. 

Frequently Asked Questions (FAQs) 

XRP is highly volatile. Its price is subject to short-term fluctuations, which makes it a risky investment. 

XRP has several advantages. It is cheaper, faster, and more scalable than other currencies. It also follows a deflationary tokenomics.

Based on the various technical analysis indicators, XRP shows bullish signals, and therefore is a good investment in 2025. However, you should look into its historical price data and on-chain developments before investing.