The last 48 hours have been characterized by a significant drop in the price of cryptocurrencies. The downtrend led to a serious panic within the cryptocurrency community. Even if the prices are currently correcting higher against the USD, the rumor in the community is that it hasn’t bottomed yet. XRP, has been the best performing major coin for a while now. However, the pressure has become so much that even XRP has lost a huge portion of its market capitalization that put it in second place.
What Has happened To XRP?
XRP is still the second major cryptocurrency per market capitalization. The only reason why it has been able to retain this position is because ETH itself has fallen significantly against the USD. At the time of writing, the total market capitalization of ETH was around $14 billion. On a monthly basis, XRP is no longer higher against the USD as it has been for the last few months. While the price has fallen, it hasn’t fallen as much as other major coins as it is about $0.5 lower on a daily basis. This is impressive considering the fact that Bitcoin and other cryptocurrencies fell by at least 10% against the USD.
XRP (XRP) Price Today – XRP / USD
Ripple is a liquidity network that offers financial institutions services that enable swift, low cost and efficient cross-border transactions. For the Ripple blockchain to operate efficiently, it needs a large amount of XRP tokens. Just like EOS, a certain amount of XRP needs to be in circulation for seamless transactions to continue within financial institutions. In the year 2017, Brad Garlinghouse, the CEO of Ripple Labs said that his company has kept XRP with escrow and this tokens are distributed to the public by Ripple Distribution. In his words:
“The newly launched Escrow feature on the XRP Ledger will allow coin owners to secure a certain amount XRP for a given period until specific terms are met. To illustrate, Escrow allows XRP senders to fill in information about when they want a payment to be complete. The payment will remain in cryptographic lock until when it is due”.
Ripple Distribution has removed $16 million from its wallet and injected more XRP tokens into circulation. When the demand of the investors remains the same and the supply increases, the value of the token will be affected negatively. Apart from the general negativity in the market, this may be one of the major reasons why the price of XRP is falling. It’s not clear why Ripple Distribution increased the amount of XRP in circulation, but this has affected the short-term price action of XRP.
XRP (XRP) Current Price Analysis
At the time of writing, XRP was correcting higher against the USD but down against BTC. It was trading in green at $0.443675. This shows that it is up by 0.24% against the USD and down by 0.46% against BTC. The 24 hour trading volume is $684,014,777 and the market capitalization is $17,892,230,650. The next few days of trading will determine if the price will continue to rise or the downtrend will resume. Hopefully the price action will remain positive long enough to make a difference.