XRP has shown relatively stable price over the years, even after going through several market cycles, and some believe this trend could be beneficial for adoption.
XRP relative price stability
After reaching an all-time high of $3.31 in January 2018, XRP experienced a significant decline and began trading within a narrow range of $0.52 to $0.25 from July 2018 to June 2019.
Notably, the price hit a low of $0.11 in March 2020 and recovered to $1.96 in April 2021. However, XRP has since returned to the $0.50 level and its current value is hovering at $0.54.
For context, Bitcoin (BTC) traded between $3,000 and $13,000 from July 2018 to June 2019. However, it is currently hovering at $68,000, with no chance of it returning to the $13,000 range again.
Similarly, from July 2018 to June 2019, Ethereum (ETH) traded between $223 and $514. Currently, the king of altcoins is trading at $2,646, and the chances of it revisiting the $500 level are almost non-existent.
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technological superiority
Investors are lamenting the price stagnation as XRP has been below the $1 level since December 2021. Amid concerns, blockchain researcher SMQKE argues that the current price is of little concern to institutions considering adopting XRP.
SMQKE emphasized that institutional investors value XRP for its benefits rather than short-term price fluctuations. XRP’s technology enables real-time, low-cost, cross-border transactions, giving it an advantage over traditional systems such as SWIFT.
According to SMQKE, this efficiency and global reach is what truly matters to financial institutions. Banks and other large enterprises are looking for blockchain solutions that can improve their payment infrastructure, and XRP provides just that.
“Price doesn’t matter”
In addition to its technical advantages, SMQKE claims that XRP’s price stability is attractive to institutional investors. Although XRP has experienced ups and downs like other cryptocurrencies, it has been able to maintain a relatively stable price range compared to the extreme volatility of Bitcoin and Ethereum.
This consistency makes XRP a more reliable and attractive option for large investors looking to minimize risk, even after market fluctuations.
Unlike more speculative assets, XRP’s stable performance gives financial institutions the confidence to leverage its use in real-world financial applications without fear of disrupting operations due to wild price fluctuations. Masu.
SMQKE also emphasized that institutional investors focus on long-term trends rather than daily price movements. He sees XRP’s stability and technical potential as key features that will drive future adoption.
He also discussed the recognition of the benefits of blockchain across industries. Some countries are leveraging blockchain for their CBDC and payment systems. The overall cryptocurrency market is likely to grow, especially as governments and businesses continue to explore decentralized technology.
XRP, with its established infrastructure and use cases, could benefit from this trend. Institutions that recognize the long-term potential of blockchain understand that the value of XRP lies in its utility, not its current market price.
SMQKE advised patience for retail investors concerned that XRP will not be able to surpass new price milestones. Although current prices may not be attractive to individual traders, he believes it is important to focus on the big picture.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
