XRP Price Down 90% From 2018 High
Similar to what Bitcoin, Ethereum and the larger crypto market is experiencing, XRP, the third largest cryptocurrency by market capitalization experienced its lowest price of the year this week.
Just after Monday’s closing, XRP dropped to $0.27 cents for the first time since December 2017. It is currently trading at $0.265 dollars which is even lower than the day’s opening.
XRP is one of the biggest losers among the top 10 cryptocurrencies by market cap and has a 7 day loss of 36%. It’s own market capitalization also fell by more than $5.4 billion in that 7 day period.
As a result, Ripple has effectively erased all of its gains during last year’s bull run and has fallen 92% from its all-time high of $3.75. According to CoinDesk price data, XRP was trading at the low price of $0.16 cents last year, therefore leading some to speculate an even further drop in price. However, past performance is not always the best indicator of future performance, especially when it alone is considered.
The total market capitalization of all cryptocurrencies is also down more than $15 billion since yesterday and is currently at $194.5 billion.
Despite its price slump over the past few months, a lot of companies are entering into partnerships with Ripple, the technology behind XRP. This has made Ripple one of the top blockchain technologies to be accepted and adopted in the market. For example, its xCurrent technology has been adopted by many financial institutions around the world.
Why is the price of XRP falling?
While there is no substantial cause, analysts say that one of the reasons is the increasing number of lawsuits being faced by Ripple. Another reason is that XRP is used only in one product of Ripple, so even if Ripple grows, it will have little impact on XRP unless the Ripple product that uses XRP grows in its user base.
Read Also : With Lawsuit Dropped, Ripple Plans Partnerships