- XRP is the second biggest loser among the top 10 cryptocurrencies of 2019
- The digital asset to face selling pressure from Ripple and adoption issues within the network
- XRP never hitting $1 or as soon as next year, some extremely bullish with $589 next month
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 Lose
The 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 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 King
In 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.
“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth” added Greenspan.