2019-12-31 23:56 |
The third-largest cryptocurrency XRP is down 95% from its all-time high of $3.92. And according to the majority of the voters to the Mati Greenspan, founder of investment firm Quantum Economics’ poll, the digital asset isn’t ever going to $1.
While 39.4% of the respondents out of the total 1,831 voters, till now, sees $1 “never” happening, with 37.5% votes, a close second comes 2020. So, overall it’s more of a tie between $1 never coming or happening next year.
Some crypto enthusiasts (12.6%) also see the digital asset climbing to $1 in 2027 while a few (10.5%) are extremely bullish, seeing $589 next month.
XRP Continues to LoseThe first time, XRP hit $1 was during the 2017 bull run on December 21st. But since hitting its peak in January 2018, XRP has been crashing. It is the second biggest loser among the top 10 cryptocurrencies after Stellar Lumens of 2019.
Currently, we are trading at $0.192 and went as low as $0.186 last week, which was 27-months low.
But why is the third-largest cryptocurrency dragging on so much?
According to Greenspan, “XRP tokenomics is a bit funny that way.”
What’s Behind its Poor Performance?The former analyst at eToro pointed out two main issues with XRP’s poor performance. The first one is Ripple holds a large portion of XRP tokens and selling them into the rallies.
The company owns 60% of all the XRP ever created. Also, Ripple has sold more than $1.2 billion growth of XRP since Q4 of 2016 and the company books its XRP sales as revenues, notes Messari. Out of the $1.5 billion Ripple raised since it was founded in 2012, $1.2 billion belongs to XRP sales.
However, recently, on this, Ripple CTO David Schwartz replied,
“Nobody buys XRP to give Ripple money to do things. We were vc/angel-funded and were going to build regardless. We started selling XRP only after there was a market price and for negligible amounts compared to our other funding.”
The second issue behind the poor price performance of Ripple’s XRP token according to Greenspan is
“Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token.”
As Ripple announced during its SWELL 2019 event, the company has now more than 300 banks and financial institutions as partners. And currently, only about 17 of them use XRP to move funds.
The market in consolidation, People returning to the KingIn the long term, however, prospects he said are “quite bullish.”
But in the short term, XRP faces selling pressure from Ripple itself and adoption issues within the network.
In a separate tweet, Greenspan explained that the market is currently in a “great consolidation” period where the entire is returning to the king, Bitcoin.
“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth” added Greenspan.
Ripple (XRP) Live Price 1 XRP/USD =$0.1931 change ~ -1.90%Coin Market Cap
$8.36 Billion24 Hour Volume
$109.08 Million24 Hour VWAP
$024 Hour Change
$-0.0037 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~XRP~USD");Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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