The bear market that gripped cryptocurrencies this year is more or less the most painful of all time. Even if this isn’t the first time cryptocurrencies are losing their value like this, this is the first time the market has experienced a sink from its all time high to levels that are this low. Imagine how an investor who bought Bitcoin during the 2017 boom when the price was approaching $19500 would feel now that BTC is struggling to stay above $3000.
Think about how an investor who bought Ether when it was as high as $1500 would feel now that it is struggling to stay above $90. Let’s not forget about how those who bought BCH when it was around $4000 would feel now that it is struggling to stay above $100. The fact is that even if the market has been more bearish than this in the past, this is by far the most emotionally and financially challenging declines in history.
Improvement Is A Requisite For Adoption
It’s true that the market isn’t at its best now but this doesn’t mean it is over. Cryptocurrencies are here to stay whether the bears like it or not. One thing that is more important than price in determining the future of the industry is adoption. However, Ripple’s CTO, David Schwartz, is one of the many experts who believe that improvement is necessary for adoption and this adoption is important for a trend reversal.
While the price of XRP has fallen significantly this period, it has fared better than many other coins. This is because the company behind the coin, Ripple is one of the most proactive companies in the industry. Even as the entire market crumbled, Ripple kept signing partnership with big players in the finance sector. Some of these partnerships strengthen the XRP token giving it the momentum necessary to kick Ethereum out of the second position.
Schwartz believes that the 2017 bull run led to a significant rise in the price of cryptocurrency but it wasn’t accompanied by an evolution of the technology. This eventually led to the sell-off that has been ongoing since January this year. In his words:
“I do not want adoption to be ahead of the technology. Before the internet got to its current point, it took a long time but it eventually became suitable for everyone to use. People did not need understand the technology in detail to be able to use it.”
The cryptocurrency industry is different. People who aren’t tech savvy have difficulties setting up wallets and navigating some exchanges that don’t have easy to use user interfaces. These things may be holding the industry back from reaching mass adoption.
It’s not all bad news, next year, the custody programs provided by Fidelity and Bakkt will most likely invite institutional investors and pave a way for greater adoption. Notwithstanding, before global adoption can be achieved, price volatility must be eliminated. More merchants will be willing to accept digital tokens when they don’t have any fear that the price may drop and fall between when a customer initiates a transaction and when the merchant receives payment.
XRP (XRP) Price Analysis
At the time of writing, XRP was trading at $0.304989. This shows that it is down by 0.98% against the USD but it is up against BTC by 0.62%. The trading volume over a 24 hour period is $336,282,906 and the market capitalization is $12,482,258,991.