While Bitcoin (BTC) has garnered a lot of public attention when it comes to the recent bullish move seen in the cryptocurrency market, XRP altcoin has also rallied over the past month, breaking a multi-year downtrend to regain some of what it previously lost momentum. In March, for example, the price of XRP was hovering against the US dollar around $ 0.15, and in the first week of December it rose to a high of around $ 0.80.
Despite all the positive changes mentioned above, the XRP Prize fails to overcome the psychological barrier of $ 1. Not only that, even with the Flare Network’s upcoming airdrop news, where the snapshot was taken on December 12th, the third-largest cryptocurrency by total market capitalization has failed to deliver a large financial gain and is currently around $ 0.50. …
Flare Network, a startup-backed startup, began distributing Spark tokens (FLR) at 12:00 UTC on December 12, on a one-to-one basis based on XRP acquisitions on participating exchanges. Moreover, even Ethereum wallets like Metamask and Ledger allow their users to participate in the event. Although the credits will be paid out this month, the final distribution of the tokens will take place in 2021.
Technically, Flare Network aims to develop a two-way bridge connecting XRP to the Ethereum ecosystem by integrating the Ethereum virtual machine into its digital fabric. As a result, it will be possible to use several advanced smart contracts in the XRP Ledger.
Is FLR Giveaway suggesting something big for XRP?
Recently, several new projects have appeared in the field of cryptography that provide decentralized financial solutions. Meanwhile, “old” cryptocurrencies like XRP have been in the business from the start, with strong partner communities and networks.
Tor Chan, CEO of AAX, a cryptocurrency exchange, told Cointelegraph that XRP’s move to partner with the Flare Network is more than just air pressure, as the move will provide smart contract features for XRP Ledger and the community, adding: “Despite trading in Last week’s deflationary period, XRP remains in the $ 0.9 range in the short to medium term, especially if sentiment remains as optimistic about Bitcoin as it has been in recent weeks. ”
Robin Morey, CEO of Ngrave, a cold wallet solutions provider, believes the decline in Spark’s token should be seen as “buying the rumor and selling news.” He is confident that at this point the cost of the airdrop has already been included in the XRP value, and that in any case, a further drop above the $ 0.5 level appears likely.
What causes XRP stagnation?
The Ripple project had always looked very promising, and many believed the ecosystem was exactly what the banking sector needed to revolutionize current legacy transaction protocols. But after announcements by China and several other countries about developing digital currencies for their central banks, the need to globalize Ripple began to diminish.
Mikhail Karkallev, an analyst at the London-based cryptocurrency.com exchange, told Cointelegraph that in the past two years Ripple has faced increasing competition not only from Stellar and other similar independent projects, but most importantly, from government governments around the world. he added:
“The chances of winning such a race are very slim. Additionally, SWIFT announced the launch of the gpi instant service, which will allow users to send international payments around the clock in just a few seconds.”
Finally, it is evident that the Flare Network token distribution could play a negative role regarding the value of XRP, since the purchase of an Airdrop-based token appears to be an attempt at additional profits. For example, the fact that XRP was down 8% after the shot indicated that some people stuck with XRP as a way to make money from giveaways, but it was sold off once Flare Network registered their XRP holdings.
The continuing bullish wave cannot indicate future XRP
While XRP has shown strong results since the last week of November, it appears that the main reason why altcoin has managed to garner so much market support lately, is that Bitcoin has surged to a full-time high of $ 19,892. Players who mainly invest in bitcoin have been pressuring new and informal cryptocurrency enthusiasts to invest in other currencies.