XRP (Ripple) Is Called One of the Biggest Disappointments of the Year

XRP (Ripple) Is Called One of the Biggest Disappointments of the Year

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2020 was a breakthrough year for the crypto market. Most cryptocurrencies have grown significantly in price and in capitalization. Only the XRP price remained at the level of the beginning of the year.

The market has grown by more than 3.7 times, from 190 billion to almost 716 billion, and is striving to set a historical maximum. Bitcoin Dominance is constantly growing. In fact, the share of bitcoin in the market is renewing highs, except for the period until December 2017, when the share of bitcoin was above 90% just because there was no market as it is.

Those who invested in bitcoin and Ethereum got a return on investment of almost 300% and over 450%, respectively, by the New Year. And only the XRP investors got almost nothing. XRP has traditionally lagged behind most of the leading cryptocurrencies. However, XRP holders had the opportunity to gain a solid profit of almost 300%. For a month, from the end of November to December 20-21, the token price was over $0.6. At the high, its price exceeded $0.72.

According to experts, the rise of the Ripple cryptocurrency occurred as a result of a new successful partnership of the company. If earlier Ripple promoted its network as the best service for cross-border payments, this time it was about promoting the XRP cryptocurrency itself. As a result of cooperation with the promising Flare Network project, all XRP holders were given SPARK (FLR) tokens for free.

Flare Network develops solutions to add Decentralized Finance (DeFi) functionality to the ecosystem of existing cryptocurrencies. DeFi projects aroused huge interest in 2020 as they provided tens and hundreds of percent of return on investment. The Flare Network and Ripple collaboration was announced in August 2020, and the XRP token has grown continuously since that time. Its price soared just before the FLR airdrop. Perhaps the turbulent dynamics just attracted the attention of the SEC, which filed a lawsuit against Ripple in the amount of $1.3 billion. The authorities accused the company of issuing unregistered securities – this is how they call the XRP token.

Ripple is not giving up, but the SEC already has a track record of killing crypto projects. In May, as a result of the SEC’s actions, Pavel Durov’s TON (Gram) project ceased to exist. Therefore, most experts are about to think that XRP will face an unenviable fate. Ripple’s management hopes for a fair resolution of the conflict with the Regulator. The change in SEC leadership gives hope. The lawsuit against Ripple was being initiated when Jay Clayton was chairman of the Commission. This position has now been taken over by Elad Roisman, who is known for being more crypto-friendly.