Crypto analysis firm Messari scores Ripple XRP 2020 performance as worst among all the crypto assets. 2020 has been brutal towards crypto assets in general. Unfortunately, the year has spelled doom for XRP holders as the cryptocurrency has depreciated significantly and also faced a slew of bad news.
Messari, the leading name in cryptoanalysis, says XRP investors must brace for bad days ahead as the token isn’t out of the woods yet. XRP 2020 performance has been dismal in the first quarter. It is no longer among the top 3 tokens by market cap. However, longer-term perspectives do look promising.
XRP 2020 performance spells doom for investors
Last year proved fatal for Ripple’s XRP. Now it seems that the gloomy prospects are continuing in 2020 as well. As per the Messari report, the XRP 2020 performance for the first quarter is rated worst among its peers in terms of market cap. Currently, it is trading at $0.18 per coin, which marks a historical low for the coin.
There are many reasons for these depressing statistics. The low point in XRP 2020 performance can be attributed to many internal and external factors. The downward price swing comes courtesy of relentless market forces that have beaten down the coin to historic lows.
$XRP was the worst performer in Q1 of the top 25 assets in our currencies sector excluding bitcoin
— Messari (@MessariCrypto) April 10, 2020
XRP carnage fuelled by myriad reasons
The first, and most prominent, reason has to be the COVID-19 pandemic. Coronavirus has bought every crypto to its knees, and XRP was no exception. However, it was certain events within Ripple that truly affected XRP 2020 performance. It all started when Ripple CEO Brad Garlinghouse questioned the profitability of Ripple sans XRP sales. It nailed the point that Ripple is dependent on regular XRP sales to stay afloat and finance its operations.
The issue of XRP sales was a tinderbox waiting to explode. Ripple has always stated that XRP price has no impact on the company’s day-to-day operations and that it doesn’t care about the sales figures. Now, the company’s CEO has sent shockwaves within the XRP community by saying that XRP sales are crucial to generating profits. This has unnerved long-term investors who were already taking a beating due to token dumps.
Another critical factor causing XRP 2020 performance to plummet is the uncertainty surrounding Ripple. The pessimistic outlook stems from the age-old class-action lawsuit against Ripple. The petitioners claim that XRP token sale must be classified as an unregistered security sale. As the trial lingers on in courts, the uncertainty factor hangs in the air.
Amidst all the negative news, there’s light at the end of the tunnel for XRP. The coin is gaining momentum in the cross-border remittance market. More crypto exchanges now offer XRP on their trading desks. So, even though XRP 2020 performance is gloomy, its long-term potential hasn’t declined much.