In recent weeks, XRP has fallen behind in performance. Although Ripple, the company behind XRP continues to boast of new developments and opening up of new corridors, it continues to be entangled in lawsuits and backlash. Since breaking below $0.20, not even the legendary ‘XRP army’ has been able to stage a breakout. But one research paper could have unearthed why XRP is underperforming.
Novogratz 2020 XRP Prediction
Earlier in February, Galaxy’s Mike Novogratz was surreptitiously recorded telling a room of financial advisors that XRP would immensely underperform in 2020. According to reports, he solely based his argument on the huge amount of XRP held by Ripple and their selling habit. Back in 2019, the company came under fire for dumping millions worth of XRP in a matter of months despite prices being at all-time lows.
Since Novogratz made the prediction, XRP has gone on to make lower lows, falling behind in comparison to top altcoins, and for weeks failed to make a new high. Novogratz’s comments were made when XRP was trading in the $0.28 region, since then, it has tested the $0.14 low and for more than a month now has been stuck in the $0.20 resistance.
Researchers: 94% Of Transactions Carry No Economic Value
Researchers from Imperial College London and University College London have prepared a seven-month report analyzing transactions on EOS, Tezos, and XRP Ledger (XRPL). The finding, found on a paper titled “Revisiting Transactional Statistics of High-scalability Blockchain,” notes that 94% of transactions on the XRPL carried no economic value.
On EOSIO, the researchers note that 96% of the transactions were triggered by an airdrop while on Tezos, 76% of transactions were used for maintaining consensus.
The researchers noted this about XRP in particular,
“The distribution of the number of transactions per account is highly skewed. Over one third (71 thousand) of the accounts have transacted only once during the entire observation period, whereas the 35 most active accounts are responsible for half of the total traffic,”
This could certainly be one of the main reasons holding back XRP, but it is certainly not the only. With lawsuits continuing to threaten the existence of the cryptocurrency, a company flooding the market to fund operations, and now a ‘spam’ ledger, Novogratz’s prediction will certainly come true if these problems continue throughout the year.