Mirroring previous upswings, Bitcoin’s [BTC] bullish rise isn’t looking to slow down anytime soon. Notably, some coins have failed to join the party. The most significant coin among them, XRP.
In 2019, the second largest altcoin in the market saw a slump against the price of Bitcoin, owing to the growing dominance and price push of the king coin.
For the first time in 2019, the XRP/BTC chart showed positive signs as the altcoin took the baton from the king coin to spearhead the latest market surge. As can be seen from the below chart, XRP took off on 14 May, following seven consecutive red-marred candles.
Owing to the announcement by Coinbase regarding XRP trading for New Yorkers, coinciding with the forever-bullish Consensus conference, XRP saw a massive +30 percent rise, even seeing a mammoth 6 percent hourly price gain on 15 May.
However, despite current trends showing positive returns for the Ripple-controlled virtual currency, its performance against Bitcoin is contrary to previous years.
As a recent report from Longhash pointed out, XRP has “lost nearly half of its bitcoin-denominated value,” in 2019 alone. Citing Trading View, the crypto-analytics firm stated that XRP rose by a whopping 1600 percent against the king coin in 2017, despite BTC nearing $20,000 later in the year.
The next two years were not so fruitful for the altcoin though. In 2018, the price of XRP, in terms of BTC, dropped by 14.5 percent and with just five months into 2019, XRP has already plummeted by 46.6 percent.
Since Coinbase reigned in the XRP bulls thanks to an overdue listing on the exchange, the XRP market has been fairly quiet. Longhash stated that since the Coinbase listing, the price of XRP against BTC has “plummeted.”
The Nasdaq XRP Liquid Index announcement in partnership with Brave New Coin is the only other standout announcement that has blessed XRP markets.
In 2017, the report concluded, the rush towards buying XRP over Bitcoin and other highly priced cryptocurrencies was because of “Unit Bias,” where investors were scared off due to the sheer price of Bitcoin, which at the time was in five-digits.
With XRP and XLM largely left out of the Bitcoin-induced bull run, bank coins are changing course and finally heading into the green, with both coins seeing over 9 percent daily gains. XRP’s turnover against Bitcoin is also down to the BTC bulls backing off over the past few hours. However, to get back to winning ways, consecutive green candlesticks will hold XRP in good stead.
Bitso XRP liquidity index breaks all time high as XRP/MXN trading volume surpasses BTC/MXN
On September 14, XRP/MXN trading volume surpassed BTC/MXN volume on Bitso, a Mexican cryptocurrency exchange.
Bitso is one of the of exchanges that accepts fiat from financial institutions and executes transaction via xRapid. The surge in trading volume was associated with this increase in xRapid volume on Bitso. XRP Research center on Twitter announced:
“The Mexico @Bitso Liquidity Index just broke previous all-time high.
Also, for the 𝗙𝗜𝗥𝗦𝗧 𝗧𝗜𝗠𝗘 in years, the #XRP/MXN trading volume reported to CMC 𝗦𝗨𝗥𝗣𝗔𝗦𝗦𝗘𝗗 #BTC/MXN volume.”
When XRP/MXN surpassed BTC/MXN trading volume, XRP was more liquid at the time as compared to Bitcoin in the US-Mexico Corridor. Bitso founder, Daniel Vogel shared this news with the community. However, XRP/MXN takeover was brief and was taken over by the large trading volume of BTC/MXN, at press time.
Apart from the trading volume, Bitso’s liquidity index broke its previous ATH.
Source: Twitter, XRP Research Center
XRP finally broke out of its months-long bearish trap to note a rise of 3.82% within an hour. The price of the coin started climbing from $0.25455 and rests at $0.26294, at press time. The coin surged by over 5% in a day with a market cap of $11.30 billion and 24-hour trading volume of $951.79 million.
XRPXRP’s distribution is now greater than half as Ripple’s escrow balance stands at under 50 billion
The year 2017 is well-remembered in the crypto-community as the ‘magical year’ that churned out many billionaires if not, generous returns against investments. XRP, which was once valued at $0.0063 in 2017, sprung to the value of one dollar in December 2017, finally topping at $3.84 in the same year. At the time, Ripple had pledged 55 billion of a total 61.69 billion XRP allotted to them, in escrow. Out of the total 99,991,355,092 XRP, Ripple owned 6,462,128,816 XRP, while 38,531,538,922* XRP were distributed.
Source: Hodor’s blog
Ripple established 55 contracts of 1 billion XRP that allowed the release of 1 billion XRP on the first day of every month. Keeping up with the contracts, the currency XRP reserves in the escrow have reached 49,400,000,013 XRP, at press time. Considering the amount held by Ripple [7,566,921,567] and the total XRP distributed [43,024,433,511*], it would be safe to say that more than 50% of the total XRP has been distributed.
However, ‘Ripple dumping XRP’ has been doing rounds in the ecosystem and these accusations don’t seem to be ceasing. After Ripple availed the 1 billion XRP released from escrow in September 2019, it moved 500 million XRP to another wallet from its escrow wallet. This acted as fuel to ongoing speculations about the San Francisco-based company trying to slam the price of the coin.
After the dubious movement, Ripple further transferred 100,000,000 XRP to Jed McCaleb, one of the founding members who left Ripple in 2014. McCaleb, who went on to form Stellar Lumens, held XRP worth $20 billion in early 2018, according to New York Times. Following his parting from Ripple, McCaleb signed an agreement with Ripple, assuring the community of not dumping the entirety of his holdings. Instead, he promised to do so in small amounts over time. With McCaleb no longer associated with Ripple, the community was taken aback with this transfer and the discussion over XRP’s price escalated.
XRP’s YTD return is noted to be -33.04%, while its inflation rate was sky-high at 27.89%. The market dominance of XRP has picked up the pace to 4.28%, but lags when compared to Bitcoin, which has a dominance of 69.59% in the cryptocurrency market. Despite several partnerships, the price of XRP has not seen a rise. Instead, it is slumping further. With multiple crests and troughs in the market, the price of XRP noted a meager rise and was valued at $0.2533 with a market cap of $11.09 billion, at press time.
XRP Community Fund is now an official foundation registered in the Netherlands
In a bid to bolster XRP adoption, as well as help build the XRPL ecosystem, XRP Community Fund has been registered in the Netherlands as an official Foundation. What began initially as an idea, the XRP Community Fund was initiated by XRPL lead developer Wietse Wind, along with several other community members. The official announcement read,
The XRP Community Fund is now an official foundation, registered in The Netherlands https://t.co/zfekYi4ogu
— XRP Community Fund (@XRP_Fund) September 10, 2019
The XRP Community Fund will be used to finance the development of tools, apps, integrations, or plugins, dedicated to ramp up XRP adoption for consumer and small business payments. The Foundation hopes to bring in more developers to the community.
“Bounties will be available for developers working on tools requested over a longer period of time by the XRP Community.”
The projects pitched by community members will be selected carefully. The projects need to be ‘doable within a decent amount of time,’ should target a great audience, and should ideally have a decent amount of votes. Once the idea is selected, the Community Fund voting committee will consult with the Community Fund tech’s advisors to make a list of requirements. If the requirements are met, “the bounty will be released by a MultiSigned transaction by the voting committee.”
Incorporated on 9 September, the fund has been deployed to finance the creation of a WooCommerce payments plugin. Additionally, the fund was also used to cover for Google BigQuery costs and create a Slack Channel for XRP UNL validator operations. Wietse Wind’s latest project that was still in stealth mode was also financed by the non-profit foundation.
XRP Community Fund’s eight original board members with voting privileges include notable members of the XRP community such as Tiffany Hayden, Wietse Wind, and Hodor, among others. These three directors have a ‘signing weight’ of 2 for releasing XRP funds to promising developers, while the rest of the board members will have a ‘signing weight’ of 1. According to Hodor’s post regarding the voting procedure, “the quorum will be 5 votes, so that the three directors can use funds at their discretion to pay the bills of the foundation, etc, and the remaining 5 members can exercise the power of overriding the decision if necessary.”
AMBCrypto has reached out to Wietse Wind for a comment on the development and the article will be accordingly updated.