After Ripple supports XRPL revision, XRP price soared 17%, ETFs received US$13.24 million inflow

XRP prices surged 17%, Ripple backed XRPL amendments, ETF inflows of US$13.24 million

On Thursday, XRP prices rose sharply, soaring more than 17%, hitting an intraday high of US$1.43. The rally coincides with Ripple's official support for the PermissionDelegation V1_1 amendment on the XRP Ledger (XRPL), which promotes core upgrades expected in the upcoming XRPL 3.3.0 release. However, the proposed feature still requires broader consensus among network verifiers before it can be implemented.

Verifier Voting and Amendment Progress

Of the 35 verifiers on the unique node list, only 7 currently voted for the PermissionDelegationV1_1 amendment. Ripple also voted in favor, but as a single verifier, it has no control over the revision process. For this change to take effect on XRPL, more than 80% of validators need to express support for two consecutive weeks. If this threshold is not met or the approval rating drops below 80%, the voting period will start again and the validator can withdraw his vote at any stage.

PermissionDelegationV1_1 amendment allows account owners to authorize another account to perform specific types of transactions, increasing the flexibility and usability of XRPL accounts. This authorization is limited in scope and does not involve all payments or account settings changes, thereby ensuring the owner's control and security.

Implications and other proposals

A role-based authority system similar to the proposed amendment has been widely adopted by financial institutions to restrict employee and service providers 'access to data and operational control. By granting precise permissions to different accounts, organizations can enhance security without sacrificing efficiency.

Jazzi Cooper, product leader for RippleX, emphasized the importance of establishing appropriate controls for regulated companies participating in public ledgers. She said that token issuance is a necessary condition for on-chain activities, and consistent standards are crucial. The PermissionDelegation V1_1 amendment follows the XLS-75 standard and replaces a previous version that was disabled due to a critical software vulnerability that this update fixes and corrects.

Node operators are urged to upgrade and run software with approved amendments to maintain network compatibility. If a node is unable to process updated protocol rules, running outdated software may cause amendments to be blocked.

Jazzi Cooper pointed out that the PermissionDelegationV1_1 amendment responds to this need for adequate controls when regulated agencies issue tokenized assets on public ledgers, while maintaining the XRPL security framework.

Other XRPL upgrades and market developments

Ripple also expressed support for two other proposed amendments: a single asset vault (XLS-65) and a lending agreement (XLS-66). The two proposals received support from 40% and more than 37% of validators respectively, but still did not meet the 80% absolute majority threshold required for activation.

The single asset vault feature provides a mechanism to aggregate single assets (such as XRP, RLUSD, or similar ledger tokens), allowing shareholders to hold proportional ownership within the vault. The loan agreement proposes fixed-term credit issuance and pooled liquidity, supplemented by off-chain credit evaluation. A security review of the loan agreement code, including a re-audit conducted by Halborn in June, found no significant or high-risk vulnerabilities.

Verifier approval only makes these features available on the chain and does not change any regulatory requirements for XRP, RLUSD, securities or lending. These developments highlight the gradual expansion of XRPL's capabilities.

Market activity and tokenization trends

After recently hitting a low of $1.22, XRP has surged about 40% in the past week, driven mainly by rising spot prices and active short covering. During the rally, spot market trading volumes surged 156%, reflecting increased investor participation. ETF flows have also strengthened significantly: On Thursday, net inflows into U.S. spot XRP ETFs totaled $13.24 million, of which Bitwise contributed $9.9 million and Franklin Templeton contributed $3.34 million. Open interest in XRP futures expanded to $3.44 billion, a 17% increase in the past 24 hours. Open interest on the CME, Binance and Hyperliquid exchanges increased by 35%, 15% and 29% respectively.

These blockchain innovations are part of a larger trend in financial markets. Traditional systems rely on multiple intermediaries, and the transition to Web3 is revolutionizing the way assets are processed. Wall Street companies and investors are now using platforms to hold shares of major U.S. company stocks, gold and silver directly in their crypto wallets. These platforms tokenize real-world assets (RWA) and use intelligent routing to find the optimal market price in seconds, effectively eliminating middlemen.

The PermissionDelegationV1_1 amendment will allow XRPL account owners to authorize certain transaction types, providing greater flexibility and closer to institutional security standards.