Ripple Transaction Levels Reaching All-Time-Low
There continues to be debate within the cryptocurrency community over the future of Ripple and, more importantly to many, XRP. XRP is the cryptocurrency created by the Ripple Labs corporation, who used the coin in order to fund their startup company years ago. Top investment advisors consistently warn that, while the XRP token can fluctuate in price like any other token, its price is not necessarily tied to the success of the company which created it.
But despite the warnings of professionals in the industry, there seems to be at least some corporation between what Ripple does and how the price of XRP fares. In the latest statistical analysis by Jackson Palmer of Adobe and Dogecoin, it appears that the biggest correlation between Ripple and XRP comes not from the successes of the company itself, but from the amount of participation on the XRP blockchain. And these numbers, according to Palmer, are consistently going down.
Participation within the blockchains associated with major coins is a major problem. Even the big three coins—Bitcoin, Bitcoin Cash, and Ethereum, have seen significant decreases to the trade volume of their cryptos, as well as the amount of transactions being processed on their expansive networks. But it seems that the hardest hit in terms of participation has been Ripple. The blockchain has seen an enormous spike in interest this year, as the early 2017 false announcement of the coin possibly being indexed on Coinbase shot the price of XRP all the way up to over $3.00.
But the price of XRP has been falling consistently since then—and so have the numbers. In 2017, XRP was touted as the top-performing cryptocurrency, seeing an unprecedented increase of 38,000 percent that year alone. The Ripple network continues to expand, too. Adding around one bank to its network each week, the organization continues to create waves.
Falling XRP Volume
But unlike the prosperous company which created it, the overall market participation in XRP trade continues to go down. In fact, Palmer outlined that the currency actually has less transaction volume now than it did way back in 2016. And in 2016, Ripple was being sold at a price less than 5% of what it currently goes for.
This is not unexpected, given the current state of the cryptocurrency market. While in sheer numbers Bitcoin has been the hardest to hit from the latest major crash, nearly every altcoin continues to see deep into the red as the months go by. For Ripple, the price and volume crashes have been equally significant. The price of the coin has fallen over 20%, from a steady price of around $.59 to its low of around $.39 now. As for volume, the numbers remain the lowest they have been since 2016.
Light at the End of the Tunnel
But there are several mitigating factors for hopeful investors to consider. First, many cryptocurrency experts contest Palmer’s use of total trade volume as being the best metric to determine the success of a currency. Though alternative metrics are difficult to find, these experts argue that trade volume alone doesn’t tell the full story—and it certainly does not tell the future.
But perhaps more importantly, leading analysts contend that the bubble-and-crash trend is simply the way of life within the cryptocurrency market. There have been crashes before, but interest always seems to eventually pick up again eventually.