Ripple’s partnerships and hard-knit community might help it tread through these rough phases.

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Bitcoin and Crypto Team Giottus Monday, May 30, 2022 - 19:34

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Ripple (XRP) is a real-time settlement system designed for enterprise use. Even though it uses validating servers and consensus mechanisms, it cannot be called a blockchain and hence is different from regular crypto assets. Ripple was launched in 2012 by Ripple Labs as an instantaneous, cost-effective and secure method to transfer from one address to another. Its native crypto asset XRP derives its value from the Ripple platform. In today’s article, we will revisit XRP’s price action during the 2018 bear market and what 2022 has in store for one of the top crypto assets in the world.

The 2018 bear market

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XRP’s price trend in 2018 (against USD and BTC pairs) | Source: coinmarketcap.com

In 2018, the sell-off for most of the cryptocurrencies, including Bitcoin, happened at the beginning of the year. Bitcoin, after having jumped to over $19,000 in 2017, lost 65% of its value by February 2018. By September, nearly every crypto asset had collapsed by more than 80%, even superseding the dot.com crash (78%).

XRP had skyrocketed from its November 2017 price of $0.02 to $3.84 on January 4, 2018. And like other crypto assets, it witnessed its low in September when the price dropped to $0.26, losing over 90% of its value from the January all-time high (ATH).

In 2020, SEC filed a lawsuit against Ripple Labs alleging illegally raising money. Investors, however, continued to remain unfazed and the crypto asset began to gather steam in late 2020 to reach its 2021 peak in April at $1.8.

Can XRP survive the 2022 bear market?

XRP’s historical price trend (2014- 2022) | Source: coinmarketcap.com

Bitcoin has lost 56% of its value since its November ATH and all the altcoins seem to reel under the same impact. At the time of writing, XRP is trading at $0.4, down by 77% from its April 2021 high. It is still among the top 10 crypto assets in the world with a market cap of $19 billion.

XRP continues to derive worth from its community and the partnerships it has entered into. As of February 2022, XRP has partnered with over 300 financial institutions in 45 countries. In March 2022, XRP attempted to chart another jump to $0.8 before it declined to its present level ($0.4). The SEC lawsuit is nearing an end and Ripple is planning to explore an initial public offering if the lawsuit ends in its favor. Ripple’s extensive utility and partnerships will help it sail through the current slump and, therefore, is likely to survive this crypto winter.

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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