Can You Stake XRP? Here’s What XRP Holders Can Earn Instead

When it comes to staking, many people wonder if they can earn rewards by holding XRP (CRYPTO: XRP). The short answer is no—XRP cannot be staked in the same way that coins like Ethereum or Solana can. This is because the XRP Ledger uses a different system called a consensus protocol that does not include staking. As a result, holders receive no XRP staking rewards.

Holders often ask about staking, especially given XRP’s recent price decline. As of October 7, XRP is trading at $1.47, which is about 60% lower than its all-time high of $3.65 reached in July 2025. Many holders are looking for ways to earn something from their idle coins.

Why the XRP Ledger Has No Staking Rewards

In proof-of-stake networks, users can lock their coins as security deposits. Validators follow the rules and earn new coins for their participation, while those who cheat can lose part of their deposits.

The XRP Ledger works differently. It relies on a consensus protocol where validators are chosen by each server based on trust. These validators confirm transactions without locking up any XRP. Additionally, Ripple’s founders created all 100 billion XRP at the ledger’s launch in 2012, and a small amount of XRP is destroyed with each transaction fee instead of minting new coins. This means there are no rewards to distribute.

Any products that claim to offer yield on XRP are essentially powered by the business models of the companies behind them, which means holders bear the risk if those companies falter.

XRP Earn Programs on Exchanges Pay From Lending, Not Staking

Crypto exchanges and lending platforms often offer earn programs for XRP holders. In these programs, companies take in customers’ XRP and pay them a specified interest rate. Typically, these companies lend the XRP to traders or other entities and return a portion of the interest to holders.

However, these programs carry credit risk. If the lending company cannot repay its customers because of loan defaults or business failures, holders may lose their funds. Additionally, participants lose access to their XRP while the company holds it, and withdrawals can take several days.

This is exemplified by Celsius, which froze withdrawals in June 2022 and later filed for bankruptcy, leaving Earn customers with locked funds and outside its first proposed return of funds.

XRP Ledger AMM Pools Pay Trading Fees, but Impermanent Loss Can Erase Them

The XRP Ledger has incorporated an automated market maker (AMM) since 2024. An AMM is essentially a pool that holds two assets, such as XRP and a stablecoin, allowing traders to trade against it at formula-determined prices. Liquidity providers contribute both assets to the pool and earn a share of the trading fees, which can range from 0% to 1%, based on provider votes.

However, liquidity providers must watch for impermanent loss. This occurs during significant price fluctuations. If traders buy the cheaper asset from the pool, the provider may end up with more of the less valuable asset and less of the more valuable one. As a result, they could end up with a lower value than if they had simply held onto their XRP.

This loss is termed “impermanent” because it can decrease if prices return to where they started. But withdrawing funds after a major price swing can lock in that loss, making the fee figures less reliable when calculating actual returns.

The XRP Ledger Lending Amendment Still Needs Validator Approval

Since October 1, XRP Ledger validators have been voting on the LendingProtocolV1_1 amendment, which could introduce lending vaults and fixed-term loans to the ledger. For this amendment to take effect, more than 80% of trusted validators must support it for two consecutive weeks. Until then, holders earn no interest.

Ripple initially proposed an earlier version of this lending protocol in January, which it revised to ensure interest would be counted only after borrowers made on-chain payments. However, this amendment would not create staking opportunities, as depositors would rely on borrowers’ payments to earn interest, which always carries default risk.

Is XRP Staking Possible, and What Does XRP Yield Cost?

In summary, XRP staking isn’t an option because the XRP Ledger doesn’t distribute rewards or create new XRP. Instead, any yield products available to holders come from external activities, such as loans from exchanges, trade fees, or potential interest from borrowers under the lending amendment.

Each option carries its own risks. Earn programs expose holders to the possibility of the company’s failure, AMM pools involve the risk of impermanent loss, and lending vaults may involve the risk of borrower defaults. Therefore, any XRP holder considering yield opportunities should carefully evaluate who is providing the rate and what risks are associated if that entity cannot meet its obligations.

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