XRP price live today 04 Mar 2024 Why XRP price is falling by 1 3% today ET Markets

why is xrp price so low

As the crypto winter dragged on, government regulators started to tighten their grip on the freewheeling cryptocurrency sector. In December 2020, the Securities and Exchange Commission (SEC) sued Ripple Labs and two of its executives for raising $1.3 billion through an unauthorized offering of XRP tokens. The SEC argued that those XRP tokens should have been classified as unregistered securities. Recent market data shows Cronos has had 18 green days out of 30, indicating a strong upward trend in its price trajectory. Additionally, Cronos’ announcement of upcoming partnerships with other networks hints at future growth and market dominance.

RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. According to data from Messari, XRP now has by far the highest rate of inflation of any large-cap cryptocurrency, at 20.5% per year. There is 20.5% more XRP circulating now compared to this time last year. In the last year, XRP has suffered one of the worst performances of any top ten cryptocurrency, having lost almost half of its value in this time. This may have something to do with the fact its circulating supply is growing at record rates. On October 9th, XRP, which is the fifth-largest cryptocurrency by market value, followed the overall crypto market’s decline.

Why is XRP Price So Low & Will it Increase?

Ripple was originally founded in California in September 2012 as Newcoin, Inc. before renaming itself Opencoin, Inc. the month after. Some of the levels to watch in the short term are the support at $0.52 and the subsequent barriers at $0.52 and $0.54. Despite the move above $0.5, XRP is not out of the woods and might still explore areas towards $0.38. On the flip side, a sustained break https://www.tokenexus.com/why-is-the-xrp-price-so-low-advantages-and-disadvantages-of-the-token/ above $0.54 and the trend line resistance as shown on the chart could signal the uptick to $1 and beyond. The resilience XRP exhibited during the long court battle underscores its potential to go through rough patches and still emerge stronger. Bank of International Settlement (BIS) has laid down standards termed ISO20022 for upgrading the cross-border payment messaging standard.

The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide. Since Ripple Labs only ties up with the central banks and wholesale financial institutions, support from the Federal Government and Federal Banks is quite necessary for the adoption.

Diversify Your Risk

If Ripple wins, XRP could soar like it did in July when it reached $0.93. An 11% bump in the 24-hour trading volume, according to CoinMarketCap data, signals rising interest among traders and speculators. The bullish outlook on Thursday mirrors a 2.38% increase in the market cap to $28 billion.

why is xrp price so low

Bitcoin price has often rallied for months following this event, lifting altcoins with it. XRP is supposed to be used by banks, exchanges, and financial institutions for cross-border payments and therefore the price of the XRP coin needs to be high. However, the XRP price movement currently happens purely based on speculations and mostly follows the price movement of Bitcoin. According to a recent study by the Bank of England, the cross-border payment industry, a key focus for XRP, could potentially reach $250 trillion by 2027.

Investors remain hopeful that a breakout for XRP could be coming in 2024. But just how likely is it?

One factor that plays into this is Ripple’s partnerships with some very large companies. It gives Ripple some stability and may prevent it from hitting even lower prices. Some experts predict that the price of Ripple will rise again by the end of 2022.

Furthermore, BTCMTX is an ERC-20 token compatible with popular wallets like MetaMask, making it accessible to beginners. Her 15-year business and finance journalism stint has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC-TV18, Thomson Reuters, The Economic Times and Entrepreneur. The announcement of Ripple’s 2024 roadmap has sparked enthusiasm among XRP holders, leading to a recovery from recent losses.

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