Cointelegraph Team
Cointelegraph
From dwindling numbers of Twitter users in Q1 to large-scale liquidations in 2019, reduced engagement has affected the price of XRP.
According to a quarterly report, online engagement towards XRP on Twitter fell in Q1 2020, while Ripple was forced to liquidate many of its holdings to stay cash flow positive.
The report, by social trading and investing platform eToro in partnership with analytics and finance management startup The Tie, indicates that the number of Twitter users discussing XRP fell by 16% in the first quarter of 2020. Meanwhile, the number of users in the “XRP Army” — supporters of the cryptocurrency — has declined 82% since January 2018.
XRP losing support and value?
This is not the first trouble XRP has had with online engagement. A Twitter user compiled a list of Telegram groups on April 15 which showed over 63% of @Ripple members had left since June 2018.
Though the connection between online activity and price across all cryptocurrencies isn’t definitive, The Tie’s research does show a correlation between XRP price and the number of Twitter users across Q1 2020.
Source: The Tie
The token — $0.19 at the time of press — is worth a fraction of its $2.28 peak at the end of 2017.
Over $263M XRP liquidated
In the first quarter of 2020, XRP was overtaken in daily volume by up-and-coming token Chainlink (LINK), and came close to losing its No. 3 spot in the Top 10 to Tether (USDT) during the flash crash in mid-March.
Even before the crypto bloodbath — which hit nearly every token hard — XRP was considered the worst performing large cap token. The Tie report noted that the firm “relied on XRP liquidations to stay cash-flow positive” in 2019:
“While Ripple liquidated only $13M worth of its XRP holdings in Q4 2019 (the least in three years), it sold over $250M worth in Q3 of last year. It is not yet known how much XRP Ripple sold in Q1 2020.”
These liquidations may be related to a class-action lawsuit the company is currently facing in New York. CEO Brad Garlinghouse is personally accused of pushing the token to prospective investors while quietly cashing out his holdings.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Top 3 meme coins: Dogecoin, PEPE, BONK lead meme rally amid growing disapproval from industry leaders
The meme coin sector rallied on Wednesday as top tokens, including Dogecoin (DOGE), PEPE and BONK, led the charge. With growing anticipation of a DOGE ETF in the US next year, industry experts weighed in on the future of investing in meme coins.
Ripple's XRP eyes rally to $2.58 as whales step up buying pressure
Ripple's XRP rallied 6% on Wednesday following increased buying pressure among whales in the past two weeks. The remittance-based token could stage a move to $2.58 amid increased institutional interest in the launch of an XRP exchange-traded fund (ETF) in the US.
Ethereum Price Forecast: ETH surges 10% with increased capital inflows, bulls set sights on $4,522
Ethereum (ETH) rallied 10% on Wednesday following increased capital inflows into ETH ETFs and a major uptick in its open interest and futures premium. If the bullish momentum sustains, ETH could overcome its yearly high resistance of $4,093 and rally to $4,522.
Biotech ETF (XBI) ended a diagonal: Looking for buying dips
The SPDR S&P Biotech ETF (XBI) is an exchange-traded fund that tracks the biotechnology segment of the S&P Total Market Index. This ETF allows investors to gain exposure to large, mid, and small-cap biotech stocks. If you’re interested in biotechnology, XBI could be worth exploring further.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.