Giant Research on Ripple and 2 Altcoin: The Secret of XRP’s Fall Solved!
In recent weeks, Ripple (XRP) has lagged behind in price performance. Although Ripple continues to announce new developments and opens new corridors involving XRP, the downward trend of crypto money continues. Since it fell below $ 0.20, the cryptocurrency could not make a break. However, a new research article reveals why XRP is underperforming.
Mike Novogratz’s Ripple prediction
Mike Novogratz from Galaxy in early February said that XRP will perform extremely poorly in 2020. According to the statements, Mike Novogratz based his prediction on Ripple ‘s sales habits and the huge amount of XRP held. In 2019, the company released millions of XRPs in a few months, although prices were at their lowest.
After Mike Novogratz’s guess, XRP continued to reach lower levels compared to small altcoins and couldn’t reach a new peak for weeks. Novogratz’s comments came when XRP was trading in the $ 0.28 region, and since then the cryptocurrency has tested its low level of $ 0.14. Ripple has been stuck with the $ 0.20 resistance for over a month.
Researchers: 94% of transactions on Ripple have no economic value
Researchers from Imperial College London and University College London have prepared a seven-month report that analyzes transactions related to EOS, Tezos and XRP Ledger (XRPL). The finding in an article titled “Review of High Scalability Blockchain Transactional Statistics” states that 94% of the transactions in XRPL have no economic value.
At EOSIO, researchers state that 96% of transactions are triggered by an airdrop and 76% of transactions are used to maintain consensus in Tezos. The researchers noted especially about XRP:
THE DISTRIBUTION OF THE NUMBER OF TRANSACTIONS PER ACCOUNT IS QUITE SKEWED. WHILE ONE THIRD OF THE ACCOUNTS (MORE THAN 71 THOUSAND) ARE TRADED ONLY ONCE DURING THE ENTIRE OBSERVATION PERIOD, THE 35 MOST ACTIVE ACCOUNTS ARE RESPONSIBLE FOR HALF OF THE TOTAL TRAFFIC.
What’s next for Ripple? Will the terrible prediction come true?
According to these experts, it may be one of the main reasons for XRP to drop, but it certainly isn’t the only reason. Cases that continue to threaten the existence of the cryptocurrency, XRPs that have dropped the market to finance operations, and now this article can negatively affect the price. According to experts, Mike Novogratz’s prediction will definitely come true if these problems persist throughout the year.