XRP has almost doubled in price in the last five years.
XRP has grown an average of 10% in the past five years, as Ripple CTO David Schwartz disclosed in a tweet today.
The XRP Ledger builder made this known in response to a complaint that XRP has shown little price gains in the last five years.
Schwartz indicated that five years ago, on December 8, 2017, XRP was trading at the $0.24 price point, and on the same date, in 2022, it is trading at about $0.40. According to the Ripple executive, that represents an annual yield of about 10%. Notably, the exact figure is a little above 13%.
Today is 12/8/2022. Five years ago was 12/8/2017. XRP is about $0.40 today and was about $0.24 on 12/8/2017. That's equivalent to an annual yield of about 10%.
— David "JoelKatz" Schwartz (@JoelKatz) December 8, 2022
It bears mentioning that despite Bitcoin’s impressive price moves in the last five years, XRP has produced a far greater annual yield within the period highlighted by Schwartz. On December 8, 2017, Bitcoin was trading as high as $17,700 on some exchanges but $16,000 on Bitstamp. Using the $16k value and Bitcoin’s current price of about $17,224, The Crypto Basic discovered that the leading crypto asset has only yielded an annual gain of about 1.53%. If you factor in 2% yearly inflation, one can argue that Bitcoin investors within the same period are at a loss.
It is an impressive feat for the altcoin faced with legal uncertainty in the US that many believe ensured that it reached a new all-time high in January 2018 instead of 2021 like most major crypto assets.
In a lengthy thread today explaining how people should treat speculative assets, Schwartz asserted that what matters is not the current price but how investors believe the price will change.
“When you look at buying something as an investment, particularly something that doesn’t produce a revenue stream just from holding it, what matters is how you think its value will change, not what value it has right now,” the Ripple executive tweeted.
It is worth noting that despite the criticism that XRP has received in the past few years, it has remained among the top 10 crypto assets for over a decade. And this year, the XRPL has seen significant upgrades with the promise of more. For example, the blockchain now has native NFT functionality offering unique perks due to its scalable network. In addition, an EVM sidechain is coming even as the network works on a native Automated Market Maker (AMM).
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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