XRP is San Francisco-based blockchain company Ripple’s native digital asset. Known for its centralized development and management, XRP has often courted controversy. Most recently, a Messari report accused the company of locking up locking up value and artificially inflating circulating supply numbers to become the second largest crypto by market cap. According to them, about 48% of the crypto’s market cap is overstated.
XRP’s current status
The cryptocurrency is the currently the second largest in the world with a market cap of over $13.1 billion. Each coin is currently worth $0.31, and it is the largest penny cryptocurrency in the world. In January 2018, XRP was riding high on the crypto wave when it traded for $3.77, shooting the market cap to over $146 billion. Since then, the coin has shaved all of its gains but has managed to keep an edge over Ethereum in terms of market cap.
Ripple’s current transaction volume moves in a zig-zag fashion. On January 1, it reached $855.7 million, topping the numbers of both Bitcoin and Ethereum for the day. However, the transaction volume fell the next day sharply to $103.4 million. It reached a low of $37.7 million on January 13. By January 24, it reached $56.69 million after experience a few more ups and downs.
On a broader scale, 30-day transaction volume figures show a downward trend for Ripple. However, the 90-day and 200-day trends show a much better upward progression.
What can happen to XRP prices?
In the next year, XRP prices will go down if the current trends continue. Regardless of the current trends with Ripple, the company, XRP won’t be able to save itself in the crypto winter on the basis of company tie-ups and launch of new payment gateways alone.
The trends suggest a disappointing performance for the asset. According to some estimates, it could go down to $0.232 by the end of February 2019. By early March 2019, it could go to $0.19, and before the end of the month, it would go to $0.09. The price could bounce back to $0.1 by April 2019, ending the year at $0.267.
Throughout 2020, the currency will trade for around $0.1, a trend which is expected to continue in 2021 as well. It might experience a few drops from that price for a few weeks in between.
Given the current circumstances, XRP doesn’t look like a fair investment choice. Those who are already invested in the currency should not expect handsome returns anytime soon unless a big bullish reversal happens out of the blue. One may wait for a year before dipping their toes into this currency. As XRP prices will be down significantly throughout 2019 and 2020, you can save some money today and buy more coins by the next year.
XRP isn’t devoid of potential, but current trends do not suggest a good time for investors to buy. If you are looking for 5 to the 10-year potential of the coin, it could still be worthwhile to halt your buying decision for now.