CRYPTO MOVERS AND PRICES
Crypto Story of the Day
Ripple (XRP) had the best price performance of any coin in the top 10 this weekend and reestablished itself as the third largest crypto by market capitalization. While there’s been some news around a new smart contract solution for the protocol, the move comes following a multi-year period of underperformance for the token.
XRP has been up in the range of 100% over the last 7 days following the weekend activity. The move pushed the token's market cap above that of Tether (USDt) for the first time since early September, regaining third position. The trading puts XRP up +160% for calendar year 2020, which actually is better performance than Bitcoin (BTC) for the same period. However, since the post-2017 lows, XRP has underperformed BTC by about 65% and remains 70% off 2017 highs where BTC is only about 15% from its own all-time high.
Over the weekend, developers with XRPL Labs, an entity developing solutions for the XRP network released sample code for ‘Hooks.’ The tech was first announced in October and has been described as facilitating the creation of smart contracts on the network. Hooks are set up on top of existing XRP accounts, or addresses, and allow for the creation of programmatic rules for the account’s functioning. The code was introduced as ‘a tech preview’ aimed at demonstrating ‘what Hooks will be able to do and how they will work in general.’ According to XRPL Labs, more technical releases and details on development progress will be released ahead of the launch of a Hooks Testnet. The final launch date of a complete code for Hooks hasn’t been communicated.
XRP has one of the most fiercely loyal communities in all of crypto. In spite of high-profile projects such as xRapid never meeting their initial promise, XRP supporters on Twitter and other forums have never been more ardent. We've argued that the 2017 price performance in XRP, where the token's market cap went from under USD 10 billion to over 150 billion in 3 weeks (then back to 10 billion a year later), is one of the most aggressive bubbles and collapses the world has ever seen. We can't help but feel that that roller coaster did something to this community in that they are willing to give XRP developers the benefit of the doubt on any announcement, regardless of past disappointments. XRP, while being associated with the highly successful Ripple payment network, has never found a significant use-case. Apparently, the XRP community is anticipating that a smart contract solution, which seems incredibly overdue, will provide the usage needed to fill the valuation gap.