XRP Ledger has implemented a major update that has reduced reserve requirements by 90%, meaning new users will now need just 1 XRP to fund their wallet, instead of previously requiring 10 XRP.

This reserve adjustment was implemented at 10:45 PM Coordinated Universal Time (UTC) and was confirmed by an anonymous XRP validator node operator on the X platform. The purpose of lowering the reserve requirement this time is to make the blockchain more user-friendly, especially for those frustrated by higher initial reserves. The move also enables users to use XRP that was previously locked in reserve accounts.

Additionally, the owner reserve for account-held objects (such as NFTs or trust lines) has also been reduced from 2 XRP to 0.2 XRP. According to the XRP Ledger documentation, the main purpose of the reserve system is to prevent spam accounts and excessive ledger growth. However, critics argue that the previous reserve requirement slowed adoption, prompting developers to push for the change.

The initiative to reduce reserve requirements began in October, with XRP Ledger developer WietseWind announcing on October 16 that XRPL Labs nodes have been configured to support lower reserve requirement voting.

The move to lower reserve requirements reflects a broader effort to improve accessibility and attract new users, which is critical to expanding the XRP Ledger ecosystem.

This reserve reduction coincides with the peak of XRP activity. XRP has grown in the cryptocurrency market and currently reaches $2.65, its highest level since February 2018. This recovery coincides with optimism across the crypto market and the ongoing legal battles of Ripple Labs, the founding team behind XRP.

Ripple Labs is engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC), which claims that XRP should be registered as a security. Ripple disputes the charges and is appealing a $125 million fine stemming from the dispute. Despite these challenges, XRP continues to grow, reflecting investor confidence in its long-term prospects.

XRP has also seen significant growth recently, rising 30% on Monday and surpassing USDT to become the third-largest cryptocurrency by market capitalization. This increase occurred over the weekend when XRP surpassed Solana’s market capitalization, showing XRP’s strong momentum amid continued developments.