The Reason Behind Ripple (XRP) and Zcash (ZEC) Being the Worst Performers of 2019


ZEC is one of the very few top cryptocurrencies that is still down 98.5 percent from its all-time high and down over almost 18% till date in 2019.

Though not one of worst since ATH, XRP is still down 92.4 percent and 28% in 2019 YTD, as per Coincodex.

These two digital assets are not the only worst ones — given that Bitcoin Cash (92%), Cardano (96%), Stellar (93%), Tron (93%), Dash (94%), IOTA (95%), and NEO (95%) among others are also down more than 90%) — but these two have one thing in common, which is their very high inflation rate.

To start with Zcash, it has the highest inflation rate at 35.7%. In the last 24 hours, 0.098% of ZEC supply has been newly minted, as per Viewbase’s Inflation Tracker.

This means, its circulating supply increases by 35.7% annually.

In comparison, the leading cryptocurrency Bitcoin — that was leading five months ago with 3.75% annualized rate — has an inflation rate of 4.25% which will further drop with the block reward halving in 2020.

The coin that recently had its halving, Litecoin’s inflation rate is currently at around 4%.

When it comes to cryptocurrencies with the fixed inflation rate, XRP has the worst at 27.89%. It is based on the 1 billion XRP unlocked from the escrow every month and sold on the market to finance its ecosystem. At the end of the month, unused XRP are sent back to the escrow.

Recently, however, Ripple CEO Brad Garlingouse while trying to clear the FUD around ‘dumping XRP’ shared that they have decreased its sales by volume Q/Q and “since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.”

However, as per the data provided by Viewbase, Bitcoin and Ethereum’s inflation rate is a meager 4.27% and 4.62% respectively.

Other crypto assets with fixed inflation rates that aren’t any good either are NEO (18%), LISK (13.76%), and Digibyte (13.08%), but still lower than that of XRP.

This could be the reason, economist and trader Alex Kruger said both the digital assets are the worst performing ones of 2019.

“There is a disproportionate percentage of ZEC and XRP pouring into the market. No wonder these tokens are the worst performers of 2019, down 25% and 30% in dollar terms, respectively, in a year BTC is up 2.7x,”

Kruger said.

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