The cryptocurrency market’s valuation has almost doubled year to date. Then why have XRP and BCH, two of the top 10 cryptocurrencies, fallen more than 90 percent since their peak while all other coins are posting high returns?
Can this be attributed to declining investment interest and declining social support? Or perhaps the increasing trust in public and truly decentralized blockchains like Bitcoin, Ethereum, etc.
XRP and BCH in the top 10, but still over 90 percent below ATH
Despite being in the top 10, XRP and BCH are still more than 90 percent below their all-time high market prices of around $2 and $2,400, respectively.
XRPUSD is down more than 90 percent from ATH, Source: TradingView
BCHUSD is down more than 90 percent from ATH, Source: TradingView
It is interesting to note that Ripple was one of the best performing cryptocurrencies of 2017 with an increase of 32,000 percent. Ripple’s “decentralized token” was so popular at the time that CNBC hosted a show to help people buy “one of Bitcoin’s hottest competitors.”
Bitcoin Cash (BCH) also came out of a Bitcoin hard fork, and investors bought Roger Vers Coin based on lofty promises from the Bitcoin Jesus.
But why then have these two high-profile, large-cap blue-chip “cryptocurrencies” been unable to continue the rally or at least rise in line with the market rally this year?
Fundamental factors have formed bearish “waves” for XRP
Former Ripple founder Jed McCaleb has been selling XRPs on the open market since leaving Ripple. He received 5.3 billion XRP when he left the company and 100 billion XRP in September. This has created a very unpleasant mood among investors in the XRP community.
In response, a significant portion of the community has abandoned all support for XRP. According to recent data, around 64 percent of “Ripple” Telegram has left the network since June 2018.
Additionally, Ripple CEO Brad Garlinghouse hinted at an impending IPO for the company in January this year. This has left investors confused about the value of the XRP token.
Aside from that, XRP’s dubious status as a security (or not) has left investors disillusioned. Although US Congressman Tom Emmer recently noted that XRP is not a security, this is not official.
Online interest in XRP no longer exists. Nearly. Data from Google Trends shows that search interest in XRP peaked during the asset’s market bullishness from December 2017 to January 2018. After that, however, the balance sheet is lackluster.
Search interest for XRP since the beginning, source: Google Trends
And what went wrong with Bitcoin Cash? Why does BCH price fluctuate?
When Bitcoin Cash hard-split from Bitcoin to improve and fulfill its “original goal,” only a few BCH numbers could have been exchanged for a whole BTC. Those days are long gone.
Gradually, the Bitcoin Cash ecosystem has lost both market value and overall health. Yassine Elmandjra, a crypto asset analyst, tweeted much the same thing in May.
However, the hourly cost of a 51 percent attack has risen to $14,005, according to the latest data. Miners have abandoned the BCH mining system and switched to Bitcoin.
This may have been accelerated by a 12.5 percent tax proposal put forward by a member of the BCH ecosystem. The proposal was canceled, but disagreements arose again between the central management and development teams.
According to Tuur Demeester, founder of Adamant Capital, the altcoin has become highly centralized over the past three years and has not seen significant development activity nor can it be logically scaled to promote use cases.
Given that XRP and BCH have lost more than 90 percent of their prices since 2017, is there still hope for the two crypto coins in the future? Only time can tell. Holders of both cryptocurrencies should keep an eye on this.
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