The crypto world is currently facing an uncertain situation as a result of XRP value. Many fans of the digital currency are arguing that the worth should be higher than what it now. A poll taken by Twitter this year showed that 80% of the participants want XRP to be higher than Ethereum. The participant preferred the digital currency to occupy the second largest position against what experts thought. Since XRP has not offered much to improve its reputation, the participant’s reaction was surprising indeed.
From what we have seen so far, one question to ask is, why does the cryptocurrency have many supporters? The simple answer is that Ripple focuses on offering remittance services to its fans more than other digital currency. The company offers many products of which one known as xRapid a cross-border payment service impress many supporters.
Why Fans expect an increase in value
Weiss Ratings did not hide the fact that their agency is not supporting Ripple. However, they admitted that the global payment platforms which the cryptocurrency created are commendable. This commendation proves that Ripple has been impactful in that area of blockchain tech application. Also, the players in the community have seen these achievements as well. Therefore, it is not a surprise that they expect an improvement in the market cap and price of XRP
Many people have raised arguments about Ripple’s position. Some believe that digital currency should be number two instead of Ethereum. Others are saying that XRP should be above Bitcoin on the ladder and take over the first position. Also, there are some who argue that the CoinMarketCap are usually wrong in their market cap calculations.
So, the two questions to ask are if CoinMarketCap gives a wrong market cap by placing XRP at $13billion while Forbes places it at $30,000. Secondly, if the Coin Market is wrong in their calculations, why does the cryptocurrency remain stagnant not minding the number of fans?
Reason for the stagnation
To answer the second question, the reason for not increasing lies in the operations of Ripple & XRP. This digital currency is a “pump and dump” asset. As a result, it will not surge to the level fans expect because of its short life span. Experts argue that the company focus more on pumping XRP price and lags in innovation. As a result, the digital currency does not have a long-term focus. Also, the so-called customers of Ripple are not into paying but are more into advertising it. So, critics state that this kind of operational tactics will not improve the XRP value.
Apart from the two reasons given above, the 200 institutional clients Ripple claims to have is a lie. According to one writer, even the partners of Ripple such as SendFriend is a fake company. The proof is that some websites of these companies have only signup pages.
Although the fans of the cryptocurrency claim that the customers are companies who provide remittance services, we don’t know yet. However, the ongoing arguments lead to yet another question which we should ask ourselves. Is the market cap calculations for XRP wrong or is it the faulty system that is causing the stunted growth?