Ripple has done it with XRP almost up to the top of the crypto market. At least in terms of market capitalization. At the beginning of 2018 XRP has reached its previous Peak at approx. 3,79 USD, which corresponds to a market capitalization of 147 billion USD. Therefore, many proponents of XRP does not believe that the Coin reached only his old all-time high again, but sometime even several Thousand USD in value could be, and even Bitcoin from the throne could come across. For Ripple, however, it was in the last two years in the completely opposite direction.
In the following XRP Chart of the last few years, we can clearly see how XRP is not only in USD but in BTC’s enormous value lost. Therefore, we want to look at today in this article, what could the reason for this sharp loss of value in the last few years and how the future for the Ripple rate appearance.
Contents
Ripple loses in USD and BTC over the last few years of tremendous value
Let’s start first with the XRP price. This is currently approximately $ 0.19. This means that all who have purchased from the all-time high, around 95% of your investment already. The market has shrunk capitalization of 147 billion USD to 8.3 billion USD. During the corona crisis of the XRP exchange rate has fallen, even up to 0.13 USD.
Surprisingly, it reached Bitcoin and many other crypto currencies to their low point in December 2018, and over it are now significantly higher. For Ripple was not in the place but the end. At that time, the price at about 0.40 USD. Since then XRP has a value loss of about 50% suffer. Ripple couldn’t break free from the spell of the bear market and is stuck still.
Since Ripple, as well as all other crypto-currencies, the Bitcoin price depends, we should also look at the changing relationship between XRP and BTC, in order to obtain a better picture of the course development. Here, XRP also shows his weak side. The all-time high in 2018 XRP cost the equivalent of 0,00026050 BTC. Currently, one XRP costs the equivalent of only 0,00001966 BTC. This is a loss of 92.4% for BTC exchange pair.
Regardless of whether the Bitcoin exchange rate bullish, bearish or in between, was, has Ripple lost in the comparison to Bitcoin in value continuously. But what are the reasons for such a strong loss in Value?
Trading on our brokers comparison-winning eToro. You are looking for a reliable and intuitive Broker to trade crypto-currencies, CFDs, shares, Forex, commodities and more? Then let yourself be in our eToro Test in 2019 all of the features explain, what possibilities are given to you here and where is here the Before – and disadvantages are . eToro Test 2019 read now.
Reasons for the never-ending bear market of XRP
There are performed a number of different reasons why Ripple continues to be so bad. One of the reasons is that XRP is rarely used as currency, unlike Bitcoin, and even Ethereum. This is, of course, the ever-declining price. Many have already fled months ago in other equipment, in order to escape the Downtrend.
Another reason Ripple itself. With the two payment solutions RippleNet and On-Demand Liquidity (ODL) promotes the company to new customers from the banking and payment services sector. But only one of these two solutions XRP is used in ODL. Most of the customers of the Ripple seem to care, but rather for the RippleNet. Therefore, the demand for XRP is hardly available. In addition, the natural liquidity of XRP for ODL is insufficient to large transactions and need to be expanded their own market maker.
Here, it is important to understand that XRP is a bridge currency in ODL. A bridge currency is used only as a means to an end and will only be bought in the short term, in order to transmit values and to sell it again. Thus, there is no basis for an increase in value. The only reason why bought currently XRP at all, is so only on the Basis of trade and investment purposes.
Regular sales of Ripple selling pressure increase
Another important reason is that the supply of Ripple is highly centralised. The company holds more than 50% of all the XRP reserves. As the network was launched, were created 100 billion XRP, and transferred to 80% Ripple and 20% to the three main developers. This means that all of the XRP that are currently in circulation of the Ripple or the three main developers were sold. Mind you, the Coins were created out of Nothing.
Carefully these regular sales have resulted, among other things, that the XRP price could not hold. The selling pressure and thus the offer were simply much higher than the demand. Ripple gets every month, a total of 1 billion XRP granted, you can sell, or invest. The equivalent of approximately 200 million USD. While Ripple uses a rule only a part of it, but the sales are still on a regular basis. Regardless of whether we are in a bear or bull market.
Revenue of over 1 billion USD in the last 3 years
A Brief Overview of the sales of Ripple over the last 3 years:
181,6 million USD in 2017 by XRP sales eingenommen535,6 million USD in 2018 XRP sales eingenommen346,0 million USD in 2019 by XRP sales eingenommenDas results in a total of 1.06 billion USD
Ripple is trying to justify their sales by comparing them with the global XRP trading volume. So you want to prove to the investors that the sales have no impact on the price. If you compare the Figures with the market liquidity, shows that the Ripple sales to eat up the majority of the liquidity of XRP.
In other words: Ripple sold as much as it gets, without having to bring the market to a complete collapse. The result is now known – an ever-decreasing price. The only bright spots were the classic Pump and Dump game, which gave investors a little hope.
Long-term Trend looks anything but rosy
Unfortunately, there are currently investors little hope. Because the Ripple and the three main developers have a total of about 55 billion XRP, which they will sell over the next few years, or even decades on the market. Therefore the sale will not remove the pressure well in the medium term, and the XRP price still under pressure.
Ultimately, Ripple does not make any sale of profit, as long as the price is 0. The XRP were created out of Nothing and Ripple transfer. Thus, Ripple earned his money through the sale of their own Coins to the ignorant and hope to the investors. To this end, various marketing tricks used to continue to keep the hope of the investors in the life. Among other things, by such things as that, Brad garlinghouse was sitting at a conference alongside the Board of the FED (Federal Reserve, Central Bank of the United States) and by the Narrative “XRP the Standard”. Exactly there are probably many investors the necessary basis to believe in order to continue to a bright future of XRP.
Here’s a redistribution of money instead of for years currently. Of faithful and hopeful investors in the direction of the Ripple.
There is no way that the XRP price will suffer in the long run, under a strong selling pressure. Although it is certainly still one or the other Pump and Dump but in the long term is Ripple even the investors in the way. Some even assume that the XRP exchange rate is currently overvalued, and over the next few years will decrease in value. If so, then you should sell his XRP, before the Ripple itself does.
Would you like to place you in Bitcoin to market in time?
On the award-winning and award-winning platform from eToro you can do this! In particular, for beginners, the platform provides one of the best User experiences in the world. In addition, you can not only rising but also falling share prices!
Just try it out and get in, instead of just reading!
75 % of private CFD accounts lose money. No EU investor protection.
(Image Source: Shutterstock)
The comments in this article do not represent any trading recommendations or investment advice.