Why does XRP fall (Why does XRP fall so much)?

Why does XRP fall? XRP falls because the market’s expectations for XRP are too high.

The reason XRP experienced a sharp rise is because its team believes that developers can earn less money on XRP than initially set goals (i.e. $20,000). Due to this reason, many project parties have already transferred funds to invest elsewhere, but this does not affect the development of XRP. For example, the recently popular token XRP of a project is also the same. So, can it attract more investors to participate now?

First, I believe that XRP has little to do with Ripple and shares the same problem with Ripple, which is that the two companies do not have a cooperative relationship.

Second, Brad Garlinghouse, the founder and CEO of Ripple, has also stated that if he leaves Ripple, it will lead to the collapse of the entire industry. In addition, he also emphasizes that XRP is a great tool. However, currently, XRP does not seem to have gained as much attention as Bitcoin and may even become a speculative asset.

The third issue is that although XRP is not just a technical solution, it has an important feature that it is more like a financial system than a currency. Therefore, when you purchase some cryptocurrencies, you usually need to pay certain fees, but once you have digital currency, it can easily generate value, so many people choose to use XRP at any time.

The fourth issue is that XRP itself is not a blockchain protocol, but a decentralized storage network. Theoretically, users can create their own wallets by storing data and establish trust in this way. However, in reality, users encounter many troubles when they want to build applications, services, or products. And when users want to use XRPay, they must spend some time to complete these tasks.

The answers to the above three questions are as follows: Who determines the price of XRP? How to evaluate the price of XRP? How to judge the market situation of XRPToken and the market prospects of XRPToken? This article is translated and compiled by the Blue Fox Notes Community “Leo”, enjoy~

The original article comes from ambcrypto, compiled and translated by the Blockchain Knight. The English copyright belongs to the original author. Please contact the WeChat public account for authorization and reposting in Chinese.

Why does XRP fall so much?

Editor’s note: This article is from the Fenghuolun Community (ID: FHBT18), author: Peipei, authorized to be reproduced by Odaily Star Daily.

Hello everyone, I am Peipei. Early this morning, I saw a graph showing the trend of XRP and found it quite interesting. Many investors, including myself, have held this coin. However, recently, after buying XRP on the exchange, the price has not changed significantly. This wave of upward trend is indeed a bit difficult to understand because from yesterday until now, we have seen many friends treating XRP as a high-yield asset to buy. But in fact, many people do not realize the reason for this high-risk thing causing today’s market situation. The biggest possible reason for this decline is the insufficient liquidity of XRP. Let us take a look at why these abnormal situations have appeared in the market:

1. XRP itself does not have trading functionality; 2. Due to the project party’s lack of incentives to reduce the circulating supply of tokens or increase issuance or destruction, it will continuously increase over time; 3. Although the official has made a substantial adjustment to the price of XRP, many people still believe that this is one of the signs of normal market fluctuations. Why does XRP fall so much?

As mentioned in previous articles, after the recent market has continued to rebound, if it can maintain the current trend, it is believed that XRP will continue to rise in the future for a period of time. Of course, if it is just speculation about some information about XRP, it can be ignored because most of the cryptocurrencies on the market are based on Bitcoin or Ethereum issuance, and not Ethereum. This will definitely have an impact on other mainstream public chains, such as Litecoin, which will not be affected. However, as long as attention is paid to its fundamentals and the development of its ecology, it will have a certain boosting effect. In addition, there is a little episode here. Recently, the price of Bitcoin has been in a low-level oscillation for several hours, which has resulted in a large number of short positions being liquidated starting tonight. This also shows that some users in the market still do not clearly know who the real winner is. Therefore, it is also a phenomenon worth paying attention to today, that is, whether XRP can still develop its own independent market in the future.

1. In the past few days, both Bitcoin and Ethereum have experienced a phased rebound, and in the past week, almost all mainstream currencies have surged to historical highs synchronously. At this time, there is less than a month left from April this year, and Bitcoin and Ethereum have risen by about 20% and 30% respectively, and during the same period, Bitcoin has surged by more than 10%! Just a couple of days ago, when BTC broke through $4,000, Bitcoin reached a position of around $55,000, and then fell all the way to a high of nearly $35,000.

2. According to CoinMarketCap data, as of around 24:40 on August 13th, the current price of Bitcoin is 0.0047 ETH/coin, an increase of nearly 80% compared to the historical peak in early September 18, while Ethereum only has an increase of over 6%. Compared with Ethereum, the rise in Bitcoin is more significant.