Ripple’s last stand, Can XRP survive the crypto storm?
The global digital assets market printed red indexes for another day. The cumulative market cap plunged by more than 2% in the last 24 hours to stand at $2.32 trillion. The 24 hour trading volume dropped by big 21% to hover around the $62 billion mark. Amid this drop, there is Ripple’s XRP haven’t seen good days for a long time.XRP enters into Zombie tokens tally
Reports show that Forbes has listed 20 “zombie tokens”. These are the crypto holding a market value of more than $1 billion. The list includes XRP, Cardano (ADA), Bitcoin Cash (BCH), and Litecoin (LTC). The tally also mentioned ICP, ETC, XLM, STX, KAS, THETA, FTM, XMR, AR, ALGO, FLOW, EGLD, BSV, MINA, XTZ, EOS.
It added that XRP has a market capitalization of over $28 billion. However, its network transaction fees last year were only $583k.
XRP is among those cryptos that failed to capitalize on the recent bullish sentiments. Ripple’s crypto price is down by more than 16% on the year to date (YTD) basis. On the other hand, Bitcoin price is up by 50% in the same period. However, Ethereum (ETH) has also gained over 36%.
XRP price has declined by 17% in the last 30 days. It is trading at an average price of $0.515, at the press time. XRP is down by 86% from its all time high (ATH) of $3.84 recorded on January 4, 2018. Its 24 hour trading volume is down by 26% to stand at $968 million. What’s happening?
The rise and continued existence of Ripple Labs and XRP have been a subject of fascination and scrutiny within the crypto community. Initially envisioned as a disruptive force in global finance, Ripple aimed to revolutionize the way banks transfer money, boasting partnerships with major financial institutions. However, despite its ambitious goals, Ripple has faced significant challenges and criticism.
Although Ripple’s blockchain network continues to operate, its utility is questioned, with limited real-world applications. Despite this, XRP maintains a substantial market value, primarily driven by speculation rather than actual use. This discrepancy between valuation and utility has led to Ripple being labeled a “crypto zombie” – a term used to describe blockchain projects with high market capitalization but little practical value.
The comparison between Ripple and other successful companies like Nvidia underscores the stark difference in performance and revenue generation. While Nvidia operates with substantial revenue and market capitalization, Ripple’s revenue from its XRP ledger is minimal in comparison, leading to unfavorable price-to-sales ratios. © Todayq News