Ripple Protocol Had Disappointing 2019, XRP Continues Struggle To Attract Utility

Ripple announced series C funding round worth $200M, at $10B valuation
Limited use case for the XRP token in the Ripple infrastructure
Crytpo and Bitcoin Market Cap Story of Day

Crytpo and Bitcoin Market Cap Story of Day

CRYPTO MOVERS AND PRICES

 

 

CRYPTO STORY OF THE DAY

XRP ('Ripple') Is Making New Lows, Touching On The Worst Levels Since August 2017 - The Protocol Has Had A Disappointing 2019 As XRP Continues To Struggle To Attract Utility

In late 2018, XRP had at times surpassed ETH as the second-largest crypto by market cap. The story was far different in 2019. XRP was the worst-performing crypto in the Top 10, losing half of its market cap or over USD 7B equivalent. While the coin has managed to hold on to have the third-largest cap, it held an over 10B lead on 4th place this time last year but now is only ahead by ~3B (over USDt). XRP is now trading at levels lower than at any point during its historic run in late 2017.

Ripple (XRP) Crypto Price
Source: TradingView.com
 

Crypto Takeaway: In late 2017, XRP has an argument for the most historic month of any asset in history. From the period of December 12 to January 5, XRP rose over 15x, growing +120B in market cap.

Crypto prices generally made little sense at the time, however, XRP's move was particularly confusing. While its founding parties, related to the Ripple Global Payment Network, were having success in creating a new, global trust-based payment network competing with SWIFT, there was only a limited use case for the XRP token in the Ripple infrastructure (participants only had to pay fees in XRP but could use any crypto or fiat asset for transfer).

We have asked ourselves since 'was the 2017 run-up in XRP driven by a misunderstanding that the token offered investors some call on the success of the Ripple Payment Network?' It was either that or we were missing something significant from the XRP investment thesis. At this point, in spite of numerous attempts to integrate their token further in their payment system, there have been no obvious signs of increased utility.

XRP and Ripple, who continue to face a slew of lawsuits, need their utility efforts to succeed if they hope to stem XRP market cap decline in 2020.

NOTE: Ripple released details of its Series C funding round last night. Ripple announced a series C funding round worth $200M, implying a $10B valuation. The round was led by Tetragon and saw contributions from SBI and Route 66 Ventures, among others. In an interview with Fortune regarding the raise, CEO Brad Garlinghouse declined to discuss revenues or operating profitability. Garlinghouse said the company is committed to its core strategy of promoting XRP.

About the Author

FRNT Financial is an Institutional Brokerage which offers clients a variety of products along with research & analytics in the crypto-space.