By Nicolas Abington | Crescent City Capital Market Analyst Intern
As XRP had an amazing winter this time last year, the third most invested token on the market has taken some serious pitfalls since. In November of 2018 XRP was trading at approximately .5 XRP/USD and has since dropped to less than half of that at .242 XRP/USD. The drop in price represents a 10.4 billion dollar decrease in market cap as investors began to send the token into a vicious cycle. The significant drop in price comes from a multitude of reasons from the crypto community as the token is heavily criticized for its lack of decentralization, risky status in regards to regulation, as well as monthly over the counter sell-offs of XRP tokens. The token has begun to be classified as a security asset to some investors causing anxiety regarding regulation. The monthly sell-offs of the token has resulted in a lawsuit against the Ripple Foundation and has caused an even bleaker outlook as government involvement begins to plague the token.
All these things considered the token has a reasonable amount of wiggle room to recover and make a major comeback. XRP is still one of the most traded tokens on the market and major adoption potential amongst major banks and other players. As the Bitcoin halving approaches, the necessity for all altcoins to stake in the market is more important than any other time in its history. As XRP continues to suffer, the emergence of competition from LTC and BCH will be important to chart in these coming months