Nick, the founder of Web3Alert, has recently provided insights into why XRP barely moves compared to other less prominent digital assets.
In a recent tweet, Nick commented on the persistent concern surrounding the seemingly stagnant movement of XRP in comparison to the meteoric rises observed in less established cryptocurrencies.
Addressing the prevalent dissatisfaction within the crypto community, Nick emphasized a crucial factor that often goes unnoticed – the liquidity of the cryptocurrencies.
People are constantly complaining about how $XRP has barely moved and all of these other projects are doing 300%+ moves in 24 hours.
The problem they fail to realize is how illiquid some of these shitcoins are that are moving. It's hard to move a $30B+ coin that is extremely…
— Nick | Crypto Crusader (@NCashOfficial) November 30, 2023
XRP is Unmoved Because it is Liquid
Nick highlighted the challenge of maneuvering a coin with a market capitalization exceeding $30 billion, emphasizing its significant liquidity.
In contrast, he drew attention to the less substantial valuation of other projects often compared to XRP. Specifically, he explained that their substantial price swings are often a result of their illiquidity.
“The problem they fail to realize is how illiquid some of these shitcoins are that are moving. It’s hard to move a $30B+ coin that is extremely liquid vs. a sub $100M market cap coin that has practically zero trading volume,” Nick pointed out.
In other words, significant investors, whales, can easily manipulate the price of tokens with valuations of a few hundred million dollars compared to XRP, with a crypto market share currently exceeding $33 billion.
In an effort to quell the constant comparisons between established cryptocurrencies like XRP and the more volatile alternatives, Nick advised against evaluating them on the same scale. He urged the community to recognize the inherent differences between blue chip projects like XRP and “shitcoins.”
“Stop comparing blue chips to shitcoins. XRP will have its day in the sun, but until then, diversify and enjoy the ride,” Nick concluded.
XRP Barely Moved in Five Years
Notably, the increased concerns about XRP’s value follow a recent examination of historical data analyzing XRP’s performance over the years. Per The Crypto Basic research, XRP has demonstrated the least favorable performance among Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).
In particular, XRP has only moved 86% from its lowest point in November 2018 to its current position at around $0.6. Meanwhile, ETH and ADA have recorded at least 1,000% through the same period.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
