In 2017, Ripple (XRP) had started off well with a slight increase of its price but later started to decline for the rest of the year. It registered a decline of about 40% to cost at $ $1.88 USD (1.61%) a piece on the CoinMarketCap market.
However, even with the decline, there are no major reasons as to why the asset depreciated that rapidly. There are no scandals that hit it!
So what really caused the decline?
In the financial markets, assets are normally owned and traded by individuals. Their prices actually depend on a peer-to-peer network; there are no regulating bodies like banks as is the case with the fiat currencies.
Therefore, it is only normal that once an investor (owner of a certain crypto currency in this case Ripple (XRP) notices a decline in the value, he or she will tend to sell of the asset to avoid making losses in the future. When there are a number of investors selling one asset due to reduction in value, the asset’s price will tend to decline further before finding a common ground or before “normalcy” returns to the market.
If that is the case, is there any hope that its value will bounce back?
Since, its establishment back in 2012, Ripple (XRP) has proved to be a better crypto currency in a variety of ways despite the fact that it is mainly traded in the South Korean markets. It has not gone mainstream compared to other crypto assets like Bitcoin.
Looking at its major benefits of its payments being extremely fast, stable and scalable, we can expect it to bounce back starting as early as mid-January. Actually as things stand now, it is showing some positive moves as from mid-December.
When compared to other Crypto assets like the Bitcoin and Ethereum, Ripple (XRP) payments take only 4 seconds while those of Bitcoin take an average of 2 minutes and Ethereum an average of 1 hour. This means Investors still have something good to look at in it.
The other thing is Ripple (XRP) steadily handles 1,500 transactions per second, throughout the week and it can be scaled to handle as many as the Visa. This means it can hardly be affected by delays as is the case in some digital assets like Ethereum.
As an investor should I purchase yet?
Chart By Coinmarketcap.com
As it stands now, the coin seems to be doing good and may just be headed for higher prices.
It would be a great time to purchase a number of Ripple (XRP).
Ripple (XRP) is rated as the second mainstream assets to Bitcoin and thus Investors are surely monitoring its prices with great interest. Remember investors always buy assets when they are at their lowest so as to maximise on the anticipated profits in case the asset’s value rises. And especially if the asset is a trusted asset like of course Ripple (XRP).