The cryptocurrency market offers a wide range of digital currencies, from popular and expensive ones to more affordable coins. According to the prediction made by the CEO of Ripple (XRP), 99% of these cryptocurrencies might drop to zero.
But what will make a cryptocurrency stand out among the one percent of survivors, and does XRP have a high chance of staying on track? Read this article to find out!
The Hype Around the Crypto Ecosystem
What Makes Up a Successful Cryptocurrency
What Will Help XRP Get Well?
Invest in Ripple!
The Hype Around the Crypto Ecosystem
The number of cryptocurrencies available on the market already exceeded 4000 by January 2021.
But there’s a problem with dead coins that were launched with hype but ended up bringing no real value or benefits. They eventually died down, leaving holders confused.
There was also the issue of the ICO craze in 2017 where the number of available coins greatly increased from 29 to 850 and continued to rise.
And only a small number of all coins will last in the long run.
Read Also: What Happened To The DAO Cryptocurrency And Why Did It Fail?
What Makes Up a Successful Cryptocurrency
Even if a cryptocurrency looks promising today, it might not survive in the long-term perspective.
These are the signs by which you can tell whether a cryptocurrency might be successful or not.
- High Market Capitalization: This shows how much impact the currency has on the crypto market — the more, the better.
- Large Budget: Cryptocurrencies with large budgets backing them up are likely to succeed.
- A Real Use Case: Those that have practical use cases will have higher chances of being successful — such as the Internet of Things, smart contracts, stablecoins, access to personal finance, and digitized metals.
- A Large Developer Community: A cryptocurrency can’t last long without people in support of it. Thus, those with larger communities will last longer.
- Rate of Adoption: Lastly, the pace at which the currency is being traded also matters.
What Will Help XRP Hold the Line?
XRP is a well-known cryptocurrency that went through the 2020 crash and litigation — but what keeps this coin alive? And what makes investors think it will save or even improve its position in the future?
Let’s check the performance of XRP by the same parameters:
- High market cap: XRP has constantly remained among the top five cryptocurrencies based on market cap, which is a sign of high investor confidence.
- Large Budget: XRP is backed by Ripple, so it features a very large budget and potential for long-term success. Ripple continues to spend millions of dollars in pushing XRP forward.
- Practical Use Case: The real use case of XRP is a day-to-day payment system, making it ideal for anyone who wants to send or receive money.
- Developer Community: The developer community of XRP is pretty impressive, with a balanced mix of expertise and experience.
- High Adoption: As time goes on, more and more people are using XRP, and the currency is even expanding its presence in traditional financial markets. It is also a cheap currency, which you’ll notice by checking out a Ripple to Bitcoin calculator.
Based on this, we may assume that XRP will survive the market challenges and remain one of the strongest cryptocurrencies in the long term.
Last Take
It’s not easy to survive in the cryptocurrency market. Many coins will not cope, but the best players with some specific features (XRP among them) will most likely endure. XRP shouldn’t end up like a large number of altcoins — no longer in use.
If you’re looking for a fast and cheap cryptocurrency, Ripple is the ideal choice. You can convert your cryptocurrency to XRP with a reputable exchange like Godex from the link above.
