The XRP cryptocurrency issued by the Ripple company is experiencing disappointing performance for its investors. While Bitcoin’s (BTC) rise to a new price record (ATH) this month has pushed it higher, it has not surpassed its high from last year.
In fact, while Bitcoin is 4% away from surpassing its ATH of $73,700 recorded two weeks ago, XRP is a far cry from that. As seen below, Trading down 83% from all-time high of $3.84 Which was reached six years ago in January 2018.
Currently, this happens to be the month in which various cryptocurrencies marked new ATHs due to the appetite for more demand which led to the rise in Bitcoin.
According to they appeared Traders on the social network Reddit, something that is testing the patience of some people XRP has been underperforming for a long time, This is not only in the current bull cycle of the cryptocurrency market, but also in the previous bull cycle that took place in 2020-2021.
Although XRP recorded a 1,900% increase in that cycle, rising from US$0.10 to US$1.97, it failed to continue rising from there. That is, at most it was down 48% from its ATH, which is different from other cryptocurrencies reaching new records.
Therefore, those who bought XRP at a higher price than the current price, hoping for an increase, They have been in loss for a long time, In fact, if you compare the price of XRP to Bitcoin, you can see that it is below the ATH recorded in 2018.
A trader on Reddit, who said he invested heavily in XRP during 2018-2019 and then sold it without looking back, questioned why he is still a bull in the market. “I don’t think; it’s never a good sign when a currency can’t break its previous high in a bullish period,” he said.
Bullish expectations for XRP are in trend
Through social networks, the businessman maintained Their performance cannot be blamed solely on the SEC lawsuit.The US securities regulator filed a lawsuit against Ripple in 2020, accusing the company of offering XRP as an unregistered security. However, Justice determined in mid-2023 that it was not that type of asset, which led to a slight increase in the currency.
Even without the lawsuit, “I don’t think it would have escalated much,” because payments resolution was not a narrative that received much attention in the 2020-2021 bull cycle, he says. And as far as the present is concerned, he warned that he does not see people getting excited about XRP.
He thought, “He is no different in any aspect and I believe his time in the top 10 (of capitalization) is coming to an end.” “It is still hovering around the same price it was five years ago when I entered the market,” he said.
For all this, it should be noted that XRP, which It is the sixth cryptocurrency with the highest market capitalization, works natively to the XRP Ledger network. This is a “no” ecosystem. Is allowed” community in which some decentralized applications have emerged such as defiNFTs and stablecoins, but it has no connection with the activities of Ripple company.
Mainly, Ripple has dedicated itself to offering this platform at the interbank level for CBDCs (central bank digital currencies), although it is not necessary to use XRP for this, so the cryptocurrency lacks a clear utility. .
However, as Bitcoin continues to rise and Ripple adoption expectations rise, speculative purchases of XRP may increase as if it were part of its issuing company. so, There are people who maintain bullish expectations For the currency, as reported by CriptoNoticias.
Anyway, analyst Mike Fay has indicated Which led to a decrease in development activity and user base on the Ripple network. In his view, this “reflects the lack of fundamental reasons to invest in XRP.”
Fay added that “CBDCs are not something that people are excited about.” In fact, as CryptoNoticias reported, such assets have been highly criticized for being capable of being seized by governments and preventing private identification of holdings.
Furthermore, the analyst says that “cross-border payments is a highly competitive space that includes almost all public blockchain networks and private trade solutions.” so, There doesn’t seem to be any big potential for Ripple at the momentWhich makes it difficult for XRP to achieve high performance.
