XRP Sinking? A Double Blow Of Underperformance And Address Exodus

Christian Encila

1 year ago

3 mins read

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Ripple’s XRP has been struggling to regain its momentum, as its performance continues to lag behind that of its competitors in the crypto market.

Recent data from CoinMarketCap reveals that XRP has been the most underperforming large-cap cryptocurrency over the past month, with gains of just over 4%. This stands in stark contrast to the significant increases seen in cryptocurrencies such as Bitcoin, Ethereum and Solana, to name a few, leaving investors disappointed and questioning the future of the digital asset.

Are Whales Slowly Losing Appetite For XRP?

Adding to the challenges, data from Santiment indicates that XRP whales, the major holders of the cryptocurrency, have shown a lack of confidence in the digital asset. The percentage of the coin’s supply in profit has declined from almost 90% in November last year to below 80% at present.

Source: Santiment

This decrease suggests that XRP whales have been selling their holdings rather than accumulating more, painting a bearish picture for the cryptocurrency’s future.

Furthermore, XRP whales have exhibited lower long exposure compared to retail investors, who are typically considered to have a better understanding of market trends. This lack of conviction among whales further dampens sentiment surrounding XRP.

Once a prominent player in the cryptocurrency market, XRP has experienced a significant decline in its influence. CoinMarketCap data highlights that XRP’s dominance in the market has plummeted from a peak of 30% in 2017 to a mere 1.48% as of February 2024.

XRP market cap currently at $31.4 billion. Chart: TradingView.com

The SEC lawsuit initiated against Ripple, the company behind XRP, along with the bear market of 2022, have taken a toll on the cryptocurrency’s value. Since reaching its peak in January 2018, XRP has lost nearly three-quarters of its market valuation, leaving investors and enthusiasts disheartened.

While the recent price action and market sentiment surrounding XRP may not inspire much optimism, the cryptocurrency landscape remains highly unpredictable. Investors and enthusiasts will closely monitor XRP’s ability to regain its footing and overcome the challenges it currently faces.

As the market continues to evolve, only time will reveal whether XRP can regain its former glory or if it will continue to struggle amidst fierce competition in the cryptocurrency space.

IMF Report Could Push XRP Price Up

Despite these challenges, there are potential catalysts that could inject positive energy into the market. A recent report from the International Monetary Fund (IMF) on the importance of digital currencies has garnered investor interest.

Source: IMF

The report examines the potential benefits of digital money in advancing public policy goals, such as financial inclusion and improved cross-border connectivity.

Notably, the report highlights Ripple’s partnership with Palau, where they are exploring plans to launch a sovereign stablecoin. This collaboration underscores Ripple’s global reach and its involvement in the development of central bank digital currencies and sovereign stablecoins.

XRP’s struggle to regain momentum and underperformance compared to its competitors have disappointed investors. The declining influence of XRP, coupled with a lack of confidence displayed by XRP whales, further amplifies concerns about the cryptocurrency’s future.

However, potential positive developments, such as the IMF report and Ripple’s partnership with Palau, offer a glimmer of hope amidst a challenging environment.

The sixth-largest cryptocurrency was trading at $0.56 at the time of writing, and bulls’ prior attempts to break through that barrier had failed.

Featured image from , chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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