Flipside Crypto Report Finds Probable Cause Behind XRP’s Drop In Trade During Weekends
XRP, the third-largest cryptocurrency has maintained its spot for quite some time now only behind Bitcoin and Ethereum. However, XRP has managed to hold onto its position despite the token’s spot price failing to make any significant gain over the past two years. Another interesting thing that came to light was that XRP trading falls significantly during the weekends and nobody knew why?
— Flipside Crypto (@flipsidecrypto) May 7, 2020
Flipside Crypto, a blockchain analytics firm seems to have found the answer to this bizarre trading trend and released a report titled “4 Things To Know About XRP Money Flows.” The report found that XRP lacks consumers and retail investors because of which the retail interest in the third-largest crypto asset is quite low.
The report suggests that a majority of the XRP transactions comes from professional traders, investors or payment processors which officially works for the weekdays just like any public or government offices and that is the reason why there is a significant drop in the trading activity for XRP during the weekends.
Flipside Crypto makes use of ‘chain-walking,’ a method to extract stakeholder behavior data which in turn helps blockchain projects to understand their strengths and weakness in order to develop better growth strategies. Flipside Crypto CEO Dave Balter explained where XRP is lagging saying,
“There are a number of impressive blockchains just heading into mainnet, such as Near, Flow (Dapper), Celo and Solana. They are launching with a customer-first mindset and real-world use cases. For example, Flow has already inked deals with the NBA and Warner Music and Celo's solutions are tailored to aid the financially underserved. Expect big things from these four in 2020 and beyond.”
Ripple the parent company behind XRP has been at the receiving end of several class-action lawsuits which claim that XRP is unregistered security and thus regulators must take action to stop its sale. The fintech firm might not have found many takers in the retail market, but its cross-border remittance technology has been in high demand among banks and financial institutions as it has partnered with over 200 banks all across the globe.
The Flipside report also found that one of the most active XRP wallets is that of Ripple co-founder Jed McCaleb who went on to create Stellar (XLM) as well. Recently, he sold a massive chunk of his XRP stash and it seems he is not done yet. The report found that McCaleb currently has $65 million XRP in his wallet which he might be looking to sell in the coming months.