One of the biggest criticisms of Ripple is that it is a non-mineable, heavily-permissioned network. It goes against the idea of a decentralized public network that creates a parallel network to banks and instead develops blockchains for banks and financial institutions. Ripple’s approach to blockchain doesn’t follow the “open,” “transparent,” and censorship-resistant network that Bitcoin follows. Despite these criticisms, it has managed to be one of the top 3 digital currencies for a fairly long time now.
The Problem With Ripple
In the first quarter, the currency started on a bad note. It opened at $0.35 and reached its quarterly highs of $0.37 within two days. Since then, the price was mostly disappointing. Its lowest price was $0.28. However, things looked much better in the second quarter when the price finally started moving up. After opening at $0.3105 on April 1, it went up to $0.3457 within 24 hours. The price then went through a few periods of correction and stagnation after which it reached $0.4763 on June 23.
At the end of Q2, the coin was trading at $0.3998. All the while, Ripple remained the third-largest digital currency in the market. However, despite this movement, CoinGecko’s Quarterly Report showed a dismal picture of the coin’s market dominance. In Q2 2019, it’s market share fell from 9.8% to 5.7% only.
Ripple Continues to Stay Behind
It is interesting for a coin like Ripple, which boasts of hundreds of working partnerships around the world to lose its market dominance by almost a half during a quarter. Note that in the second quarter, it revealed that Spanish banking giant Santander would expand One Pay FX to non-customers as well. This tool will now be available as One Pay app and bring Ripple’s international payment functionality to a wider audience.
The company opened two new offices – Brazil and Switzerland. It also partnered with international payments provided MoneyGram to facilitate cross-border payments. Weiss Ratings even rated Ripple as the second-best cryptocurrency, besting Bitcoin, the world’s largest, most dominant and most expensive digital currency that adheres to decentralization to the letter.
For now, Ripple fails to show any signs of significant growth during Q3, and the wider crypto markets are going through a strong selling pressure.