Ripple News Analysis
Critics of this blog have sometimes made the argument that we are too optimistic on the leading cryptocurrencies. In light of that, let’s take stock of our predictions for 2017.
Bear in mind that we made these predictions much, much earlier in the year.
At the time, investors were still licking their wounds from a crash in May. Nonetheless, we predicted that by the end of the year:
Litecoin would reach $100.00;
And Ripple $1.00.
How do those predictions hold up today? Let’s see. As of this morning:
Litecoin is trading at $240.00;
And Ripple $0.27.
Three predictions were correct, one was not. In fact, we dramatically underestimated the rate of crypto growth, because Bitcoin and Litecoin actually broke above our 2018 predictions as well.
Only Ripple lags behind. Its price has shot up 9.3% against the U.S. dollar in the last day, but that doesn’t eliminate a full quarter of sluggishness. So what’s going on?
Ripple Price Chart:
Why Are XRP Prices so Low?
XRP hasn’t been able to sustain a rally because there is deep skepticism about its friendliness with Wall Street and central banks, not to mention its expansive monetary base.
Investors aren’t happy that Ripple has 55-billion XRP tokens to its name. They worry the company will dump those tokens at an optimal price, leading to an unexpected supply boom.
This would, in turn, depress prices, causing retail investors to lose out. That’s the big fear.
But those factors not as problematic as they seem.
Ripple locked up its 55-billion XRP in an escrow account. Why? Because it heard the criticisms and wanted to reassure investors that it wasn’t Ripple’s intention to “cut and run.”
No one can access the full amount for another four-and-a-half years.
As for the Wall Street connections, I believe those are constructive for XRP. It shows that Ripple doesn’t need to burn down the existing financial system in order to win. It just needs to become the leading settlement agency for international money transfers.
That is a much lower bar to cross, which is why I still hold out faith that Ripple prices will accelerate in the New Year. My reasoning has worked well for other cryptos; there is no reason to abandon it now.
As such, we maintain our $2.00 Ripple price prediction for 2018.
Also Read: How Can I Buy Ripple XRP?