With the majority of cryptocurrencies showing strong double digit declines over the past week, if not simply over the preceding 24 hours, and the crypto markets overall continuing to show signs of severe confidence issues, Ripple’s XRP appears to be emerging as a hedging option for investors in the space.
At the time of writing, with the exception of stablecoins, at $0.45 XRP has been the strongest performer amongst the leading top 50 altcoins over a five day period which has seen three extraordinary sudden market dips.
XRP has been consolidating its position as the leading alt-coin in recent days, having overtaken Ethereum last Friday in terms of market capitalisation and having since extended its lead over ETH by $4 billion.
There are a number of reasons for Ripple’s relative success in the current bear market. Firstly, as previously reported late last week, Coinbase confirmed its integration of XRP as a native currency on its trading platform, with CNBC’s crypto analyst Ran NeuNer famously tweeting to his 92k followers that everyone should “dump Bitcoin and Bitcoin Cash and just buy XRP.”
These hash wars highlight why everyone should dump BTC and BCH and just put all their money into XRP!
— Ran NeuNer (@cryptomanran) November 17, 2018
Ripple has also been enjoying something of a second wind since the release of xRapid, a new blockchain-based cross-border payments facility which went live in late September, and which has demonstrated potential for much wider adoption in its longer term bid to present itself as a viable alternative to the SWIFT banking system.
“One of the biggest hurdles for mass adoption of Ripple’s XRP system however, are the current battles playing out in the US court system,” states Mati Greenspan, a crypto analyst with eToro. “Ripple currently has several lawsuits against it with the plaintiffs claiming that the XRP token is actually a security,” he added. “The company has now consolidated all of these cases into one hoping for a positive decision from the federal court.”
The outcome of that decision, if positive, could – according to some analysts – see XRP emerge as the leading cryptocurrency. But, given the Ripple platform’s centralised architecture, some qualify XRP as lacking the basic characteristics required to qualify as a true crypto.