Research shows why XRP performance is so bad.
In the past few weeks, XRP has been performing very poorly. Although Ripple, the company behind XRP continues to be proud of new developments and the opening of new corridors, it remains involved in lawsuits and backlash. Since the break below $ 0.20, not even the legendary army of cryptocurrency enthusiasts has managed to organize an escape. But a research paper may have discovered why Ripple’s cryptocurrency is underperforming.
In early February, Galaxy’s Mike Novogratz was recorded, telling financial advisers that XRP would perform immensely poorly in 2020. According to reports, he based his argument only on the huge amount of XRP maintained by Ripple and its selling habit. . In 2019, the company was criticized for dumping millions of XRP in a matter of months, despite the all-time low prices.
Since Novogratz made the prediction, the XRP has been making lower lows, falling behind compared to the major altcoins, and for weeks failed to set a new record. Novogratz’s comments were made when XRP was trading in the $ 0.28 region; he has since tested the $ 0.14 low and has been stuck in the $ 0.20 resistance for more than a month.
Researchers: 94% of transactions have no economic value
Researchers at Imperial College London and University College London prepared a seven-month report analyzing transactions on EOS, Tezos and XRP Ledger (XRPL). The finding, found in an article entitled “Revisiting highly scalable Blockchain transactional statistics,” notes that 94% of transactions on the XRPL had no economic value.
At EOSIO, researchers note that 94% of transactions were triggered by airdrop, while at Tezos, 76% of transactions were used to maintain consensus.
“The distribution of the number of transactions per account is highly distorted. More than a third (71 thousand) of the accounts made transactions only once during the entire observation period, while the 35 most active accounts are responsible for half of the total traffic ”
Perspective for XRP
This could certainly be one of the main reasons for preventing XRP, but it is certainly not the only one. With the lawsuits continuing to threaten the existence of cryptocurrency, a company flooding the market to finance transactions and now a spam book, Novogratz’s forecast will surely come true if these problems persist throughout the year.