With Bitcoin (BTC) and Ethereum (ETH) in the spotlight lately, Ripple-connected XRP shows itself. The No. 3 cryptoasset by market capitalization has almost doubled in the past week and is the best performing coin among the top 30 tokens by market capitalization in a month.
At the time of writing (17:17 UTC), XRP is trading at USD 0.55 and is up 22% in one day and 93% in one week. The price rose 109% in a month and 138% in a year, turned around (USTD) and became the third most important crypto asset again.
The last time the XRP was above the $ 0.50 level was November 2018.
By comparison, BTC is trading at USD 18,384 and is virtually unchanged in one day. It’s up 10% in a week, 40% in a month, and 160% in a year.
The number of new XRP accounts created in the last 24 hours also exceeded any other route in the last 18 months.
As an economist and trader Alex Krüger recently argued, “[altcoins] Usually move in the * same direction * of Bitcoin, but more (in both directions) “and you” can imagine [altcoins] when leveraged bitcoin plays. ”
In a tweetstorm, Krüger invoked Newton’s second law of motion and equated BTC with a “heavy stone” and altcoins with a “pebble”. Because of its larger market cap, BTC needs more capital to move the price needle, while a mere ripple effect (no pun intended) could drive altcoin prices high.
Today, 24-hour XRP trading volume hit nearly $ 11 billion (up from around $ 1 billion in early November) versus $ 28 billion at BTC, according to data from Coinpaprika.
Krüger added that decorrelation periods between Bitcoin and Altcoins have been the exception rather than the rule since 2018. He said market dynamics were different before 2018, citing BTC / XRP as an example.
XRP price chart:
The trader went on to warn that while correlations are real, they also tend to be broken, as was the case in October 2020. When this inevitably happens, “it can be very painful for a great many with altcoin assignments,” he noted, predicting that the BTC / altcoin correlations will eventually reverse with the possible surge in a Bitcoin Exchange Traded Fund (ETF).
Meanwhile, in early November, veteran trader Peter Brandt characterized the BTC / XRP performance as a “Dead Count Bounce” after “32 consecutive red days”.
Also a current report by authors from the Imperial College of London and the UCL center for blockchain technologies specified that more than 94% of the transactions in the XRP Ledger, an online payment system, had “no economic value”. As reported, the XRP Ledger Foundation was created to “accelerate the development and introduction of the decentralized XRP ledger”.
A friend (not yet a coin acceptor) just texted me and asked what was going on with $ XRP
@bgarlinghouse US regulators are slow to clarify XRP regulations. The US has until May 2021 … https://t.co/ONcC2YjvqQ
@FelixOHartmann @mrjasonchoi Ok, they’re back. But how long? Sustainable? Not? Will they bite on Defi?
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