Over the past three years, XRP’s price performance has been disappointing, raising concerns among investors and experts.
This lackluster price performance is particularly noteworthy given the broader crypto market’s recent upswing when larger cryptocurrencies such as Bitcoin and Ethereum experienced significant growth. This unfavourable performance has led market participants to scrutinize the factors behind XRP’s struggles.
A recent discussion on the X platform highlighted the growing frustration among XRP investors, with one enthusiast highlighting the cryptocurrency’s three-year consolidation phase. Despite the frustration, the individual remained optimistic, asserting, “But I do believe the breakout can be massive!”, receiving support from well-known Ripple advocate Bill Hogan.
However, another investor shared a chart comparing XRP’s performance to that of other top cryptocurrencies, revealing that XRP had dropped by 17.8% in the past 90 days, while Bitcoin, Ethereum, Chainlink, and Binance Coin had gained over 25% each.
Hogan acknowledged the poor performance, stating, “At least XRP isn’t last. The question is why has the performance over 90 days been so poor. It is unnatural.”
Hogan has previously addressed rumours that Ripple’s continued sale of XRP to fund operations is contributing to the coin’s poor performance. He recently pointed out the inconsistency in criticizing Ripple for gradually selling its XRP holdings while being supportive of Wall Street’s Bitcoin accumulation.
Meanwhile, the XRP Army has been looking for solutions to boost XRP’s price, with some suggesting the implementation of Hooks, a feature that would provide smart contract capabilities to the XRP Ledger (XRPL). This would enable decentralized data sourcing, potentially unlocking XRPL’s full potential and boosting the price of XRP.
However, others have expressed dissatisfaction with XRP’s poor tokenomics and have suggested diversifying their holdings into other cryptocurrencies.
“I’m guessing that many XRP holders are smart enough to diversify into the others, especially BTC, which when it rises, it lifts the other boats. The tokenomics of XRP are terrible when compared to many others in the top 50. Diversify those XRP bags.” One XRP investor wrote.
The ongoing lawsuit between the U.S. Securities and Exchange Commission and Ripple and the uncertainty surrounding its outcome have also negatively impacted XRP’s price; despite Ripple’s significant victory when Judge Analisa Torres declared XRP a non-security, the coin’s price has remained subdued, dropping approximately 44% since July 13, 2023 ruling. Additionally, the possibility of an appeal by the SEC if a settlement is not reached has added to the pressure on XRP’s price.
At the time of writing, XRP was trading at $0.53, representing a 1.59% decrease over the past 24 hours, according to CoinMarketCap.
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