since it hit its peak in 2018 would agree that being faithful to the project has been an extreme sport. While there are high hopes that the token might recover this cycle, tokenomics seems to disagree.
AMBCrypto discovered this after analyzing Ripple’s revenue from XRP transactions and its market cap. According to data from Messari, XRP’sWhile the token had fallen to 6th in terms of market cap, the value was $34.56 billion. When divided by each other, the ratio of market cap to revenue gives a reading of 61.18.This ratio is considered high and might be detrimental to XRP as investors might consider the cryptocurrency not worthy of buying.
But the cryptocurrency’s problem is not limited to that. Another factor that has hindered XRP’s growth is its supply. The token fundamentally has a total supply of 100 billion. Out of this, 54.88 billion were in circulation. If there is a high supply, and demand for the cryptocurrency remains low, the price would find it difficult to appreciate. This was XRP’s story.in sight per Ripple’s lawsuit with the SEC, XRP might find it difficult to exhibit top performance this time.of the project’s on-chain status also reinforced this sentiment.
However, both EMAs were too close to the price which stood at $0.62. This position signaled that while the price might extend, making an out-of-this-world rally seems unlikely.For the short term, the price of XRP might climb toward $0.68. However, the long-term prediction might be a bit conservative. In a highly bullish case, the token might trade less than $1.Victor is a full-time journalist at AMBCrypto.