Ripple Is Down Nearly 50% Against Bitcoin This Year Despite Recent Rally
After becoming the darling of the 2017 crypto asset bubble, Ripple (XRP) is now down heavily against Bitcoin (BTC) in 2019. So far this year, the altcoin has already lost nearly half of its bitcoin-denominated value.
XRP is a controversial altcoin for a variety of reasons. There have been numerous allegations that an army of bots is used to promote the altcoin on Twitter. Additionally, XRP’s high level of centralization may call into question whether it should even be considered a cryptocurrency.
XRP’s Horrible 2019
According to TradingView, XRP skyrocketed 1600% against BTC on cryptocurrency exchange Bittrex in 2017. However, this was followed by a 14.5% drop against BTC in 2018 and another 46.6% drop so far in 2019 as the majority of trading has moved to Binance.
The reasoning behind XRP’s fall from grace is hard to determine. In late 2017, the price was pumping around rumors of an incoming listing on Coinbase and numerous partnerships with various banks and financial institutions.
XRP wasn’t made available on Coinbase and Coinbase Pro until February of this year, which led to a brief recovery in the declining price. However, the price of XRP has plummeted in terms of BTC since then. News that XRP trading on Coinbase is now also available to users in New York has led to another rally in the XRP price over the past couple of days, rising roughly 20% against BTC since Monday.
Additionally, investors may have finally realized that many of the banking partnerships announced by Ripple Labs weren’t related to the use of XRP or involved payments from Ripple to these institutions to incentivize them to try out the fintech company’s products.
During the price run-up in 2017, it was also widely believed that people were purchasing XRP and other altcoins instead of BTC simply due to unit bias. In other words, they were purchasing XRP instead of BTC because the price of XRP seemed so low by comparison. However, users may have been ignorant to the fact that XRP has a much larger supply than BTC.