Messari analyzed Ripple’s performance for the first quarter of 2020 and it turns out that XRP is the worst-performing asset among the other 25 biggest cryptocurrencies despite Bitcoin, as we are reading more in the XRP news below.
Bitcoin, as the leading cryptocurrency by market cap, started the year at $7,236 and ended the first quarter at $6,384 with a 12 percent decrease. XRP started this year at $0.1939 and ended the quarter at $0.1740 which marks a 10 percent decrease. The pullback for Ripple’s XRP came as Ripple made some notable partnerships to leverage the third-largest cryptocurrency with the company’s liquidity solution- the On-Demand Liquidity as Messari analyzed. The top Bitcoin exchanges in Mexico such as Bitso said that XRP was used as a bridge to power the 2.5 percent of the remittance between Mexico and the United States. Messari also noted that Ripple’s strategy of easing the XRP sales was doing nothing for the coin since it started in 2019.
Ripple long stated that the sales of the crypto asset are too small to have a bigger impact on the price and are small compared to the bigger XRP daily volumes since the company dramatically scaled back on the routine programmatic sales. It managed to sell zero XRP coins in the last quarter of 2019 on crypto exchanges while also dropping in sales to institutions over the counter. According to the Messari researchers, the reduced sales are having almost no impact on the XRP price.
Furthermore, Messari commented on the securities lawsuit of Ripple which was expected to ‘’ march on for the foreseeable future’’ while the main plaintiff and investor Bradley Sostack, claimed that Ripple sold the XRP illegally as unregistered security and breached the US securities laws. The federal judge denied the Ripple motion to dismiss the lawsuit.
At last, Ripple targets the EUR/USD payment corridor but secretly trying to enter the busy and high volume. Ripple is a new age settlement platform that is mostly pinned on cost savings and speed. There are a lot of benefits as well of cost savings and instantaneous settlement procedures as pilot programs but the court cases and no clarity is definitely the problem. For the financial institutions that use the on-demand liquidity service, the partner exchanges such as Bitso and Bitstamp are the most critical.
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