If you love the cryptos and you have a basic knowledge of the blockchain technology, the first coin your will fall in love with in the top 5 is Ripple (XRP). However, you will not be at ease with its price at first because it tends to stay below the $1 mark even when there is hype around the coin.
There are many investors, experienced and newbie, who like you do not analyze a crypto coin by looking at the price and value. Ripple (XRP) has always been on the news and this does not seem to affect the price either to the northern or southern zones.
Getting the Ripple and XRP basics Right
There is a lot of confusion between the Company Ripple and the XRP, a coin. These are two separate entities. When talking about XRP price, the focus should be on the demand in the market and versus the supply. Sometimes, and we saw this in December, speculation plays a major role in price especially when it is superficial.
Many people entering the crypto-sphere investing real do so in the hope that whatever digital asset they stake on will appreciate in price and that speculation. The end results are the profits. On 13th December, there was a lot of demand for cryptocurrencies and this led to the price surges across the whole market before it started skydiving to date.
During the January trading period, there were speculations that XRP is getting listed on Coinbase exchange and the coin price high an all time high of the $4 threshold. When this did not come to pass, the price dipped to below the $1 mark. Speculation driven price gain is not sustainable.
Price and Value of XRP
Price and value are two different things and many crypto investors tend to confuse them. When you purchase a product you are buying value and the cost is the price tag. The trading Ripple (XRP) price does not reflect its value on the surface and according to the Ripple Founder, Brand Garlinghouse:
“XRP’s value lies in its utility as the best asset for payments, not one specific event or rumor.”
This brings us to XRP real world use cases; the company has products that have become popular in the banking and currency remittance circles and these partly gives XRP a utility aspect that adds value to the user and increased uptake is envisioned to add value to XRP.
News and its Effects on XRP Price
Generally, digital coin news has been taking advantage of the volatile nature of the crypto market. It is very easy to bring down a digital coin with news from an authoritative source. The same can bring a small coin to the limelight. However, this has never worked for XRP.
Ripple the company and XRP the coin have been in the news in several occasions and we have seen spike and dips depending on whether the news are negative or positive and then the price gets back to normal. The past XRP price surges are clearly an indication of adorers turning into users due to increased XRP awareness. When adorers turned into adopters, the demand for XRP rose and so did the price.
XRP has been hit by regulation demands just like any other coin and the resulting uncertainty has kept institutional investor away. If these restrictions were done away with, then XRP would be in a miles above where it is now. Increased XRP popularity among exchanges is one of the best route to market strategies and adding to the coin’s health.
The growth of Ripple (XRP) is backed by its utility hence the demand. The more use case the coin has the better for the holder. SBI, AMEX and Coin cannot be wrong by making the coin their natural choice. These partnerships and a supportive community are the ones making XRP the coin of the future.