Why Ripple is low? This is the question arises in the minds of everyone who have invested in the XRP token assets. This is due to many reasons and one authentic reason will not justify the whole scenario. Despite being the top 3 position, the token is losing its price value day by day.
$3.84 at the Start of 2018
The start of 2018 was proved to be profitable for XRP as the value at the beginning of 2018 reached $3.84 and that is the hallmark position of the coin till today. After showing the great rally, it began to crash and fell into the spell of the bearish trend. However, it is not that the adoption of XRP is not so large, but on the other hand, it is fairly recognized among the crypto enthusiasts and has fair adoption.
Worst Performer in 2019
The coin is among the list that performed worst in 2019 and has not shown a satisfactory rally. It seems that when bitcoin falls, it shows recovery as it happened back in 2018. But now, the bitcoin dominance is above the altcoins dominance. This might be the one reason for its slumping. In the month of July, it checked the $0.46 and then started its journey in the downward direction. From the past few months, it is clinging below $0.30.
Possible Reasons behind the Slumping
The Ripple unlocks the tokens from escrow and releases every month. Due to the full hold of the company over its tokens, its blockchain is not considered as a fully decentralized platform. There is a lot of confusion about this phenomenon and some crypto experts are even dissatisfied with this act of the company. They claimed the Ripple team to be the cause of its downfall.
Moreover, it has many contracts and agreements with institutions, companies, and banks all around the world. This has increased the adoption of token but not price. This is very unnatural as the Ripple is so popular and among the top three coins of the crypto market but its value is too low. The RippleNet has no necessary condition that only XRP tokens are used to make peer-to-peer transactions. And definitely, the partner enterprises are not bound to utilize the tokens. The price volatility is only based on the selling pressure on crypto exchanges.