Over the past years, Ripple (XRP) has grown into one of the world’s top cryptocurrencies and has firmly established itself as the third biggest crypto in the world in terms of market capitalization. That being said, XRP has been one of the worst-performing cryptos this year, despite the fact that almost the entire market has been in the middle of a major bull run for most of the year. Among the top 10 tokens in circulation at the moment, eight have been able to post highly impressive gains so far this year. However, in the case of Ripple, it has been a year to forget so far as the token has lost as much as 20% in its value year-to-date.
Among Worst Performing
It is objectively clear that XRP is currently one of the worst-performing cryptocurrencies among the large-cap ones this year and experts believe that the reason behind this has to do with Ripple, the company that holds around 75% of the tokens. According to data collected by Coin Metrics, Ripple has been selling XRP tokens at a much quicker rate than before, and that has possibly beaten down the price of the token considerably. That being said, Ripple clarified on Friday that it does not believe its actions have had an effect on the price of the token.
On the other hand, the co-founder of Ripple, who is no longer with the company anymore, Jed McCaleb is apparently dumping half a million tokens on a daily basis. Such intense selling pressure is sure to have an effect on the price of the token, and that is what seems to be happening with XRP right now.
A co-founder of Multicoin Capital, a cryptocurrency hedge fund, stated that the company has raised its rate of selling considerably over the course of the past three quarters and investors are only now realizing what Ripple has been up to.
Featured image: DepositPhotos © adriantoday