Even with the snapshot on Dec. 12 for the upcoming Flare Network airdrop happening, the Ripple (XRP) prices did not gain much ground, remaining at circa USD0.50.
Though BTC has picked up most of the focus when talking about the recent bullish rally observed in the cryptocurrency marketplace, Ripple rose during the previous month, breaking out of a multi-year fall to get back a portion of the previously lost momentum. For instance, in March, Ripple prices against the USD hovered near the USD0.15 position, just to rise to a high of circa USD0.80 by December’s first week.
But, even with all the positive developments mentioned above, the worth of Ripple wasn’t in the position to break the $1 psychological barrier. Moreover, even with news of the incoming FLR airdrop, for which a distributed ledger snapshot was successfully made on December 12, the 3rd-biggest crypto by overall marketplace capitalization wasn’t in the position to make any big monetary moves and currently stands at circa USD0.50.
The Flare Network, a startup supported by Ripple, started the procedure of distributing Spark tokens at 12 AM Coordinated Universal Time on December 12, in a 1-to-1 ratio, founded on the Ripple holdings held in the participating exchanges. In addition, even wallets like Metamask and Ledger allow their customers to take part in the happening. Although the balances are going to be settled this month, the last distribution of the tokens will occur next year.
The Flare Network wants to develop a 2-way bridge linking Ripple to the ETH system by incorporating the Ethereum Virtual Machine in its virtual framework. As an outcome, it will be possible to apply different state-of-the-art smart contracts to the Ripple Ledger.
Flare Network airdrop telling of something bigger for Ripple?
Lots of new ventures providing DeFi services have recently developed in the crypto-arena. In the meantime, “old-time” virtual currencies such as Ripple ran their business in their own sphere from the very beginning, featuring robust communities and partner networks.
Thor Chan, chief executive officer of AAX — a crypto exchange — says that Ripple’s strategy of a partnership with FLR is more than just an airdrop since the move will incur smart contract functionality to the Ripple Ledger and its community, stating that even with trading down over the last 7 days, USD0.9 is still feasible for Ripple in the short and medium-term, particularly if the talk around Bitcoin stays on the subject of a bullish run.
Some experts think that that the drop in the Spark token needs to be handled as a rumor that will help sell the happening. At this point, the worth of the airdrop has already been calculated into the worth of Ripple, and additional downside under the USD0.5 level seems likely.
What causes Ripple prices stagnation?
The Ripple venture has always been very promising, with lots of experts thinking that the ecosystem was the thing that the banking industry required to refresh the older protocols. But, after the news made by Chinese media and some other nations concerning the progress of their own digital central bank currencies, the urge to globalize XRP began to quiet down.
During the last few years, XRP has faced increasing rivalry not just from Stellar and similar autonomous ventures but, more significantly, from state governments over the world. The chances of winning a race like that are very slim. In addition, the SWIFT system also made public the launch of the ‘GPI Instant Service,’ which allows clients to transfer payments as cross-border and during the whole day, taking just a few seconds.
And finally, there is reason to believe that the distribution of project tokens of Flare Network could have a negative role connected to the value of XRP since purchasing a token against the background of an airdrop appears to be a try to get some bonus profits. For instance, the fact that Ripple prices fell by eight percent after the snapshot indicates that certain individuals held on to Ripple as a way to take advantage of the airdrop but then sold it as soon as the FLR recorded their Ripple holdings.
The ongoing bull rush isn’t necessarily telling of the future of Ripple
Although XRP has been performing well since the last week of Nov., it looks like the main reason that altcoin has been in the position to get so much marketplace support in recent times is that BTC has risen to an all-time high of USD19,892. In addition, high-income names investing mostly in BTC could have pushed newer, more casual cryptocurrency enthusiasts to invest in other currencies.
Thus, Bitcoin increased by 40% in Nov., while ETH increased by 53 percent and Ripple by 166 percent. But, while BTC and ETH got to their peaks at the end of Nov., XRP got there on November 24 — showing a rise of 230 percent since November 1 — after which it fell slightly. The quicker momentum growth was probably connected to the Flare Network airdrop, as cryptocurrency enthusiasts were happy to purchase additional Ripper to get more Flare and thus double their gain.