Yasin Mobarak, a prominent XRP community member and founder of Dizer Capital, recently projected the factors that could lead to an XRP price growth amid the asset’s underperformance.
Mobarak disclosed this in a recent discussion. The discourse was initiated by pro-crypto attorney Bill Morgan, who expressed concerns about XRP’s underperformance in comparison to other assets like Bitcoin (BTC) and Ethereum (ETH) over the past few years.
XRP Underperforms BTC and ETH
Morgan highlighted the trend of XRP seemingly moving in tandem with the overall cryptocurrency market, but collapsing in the long term.
According to Morgan, this slump has persisted despite Ripple’s efforts at building the XRP Ledger. He emphasized that XRP has experienced a significant decline, plummeting by 84.85% against BTC and 91.58% against ETH since 2018.
Morgan initially considered the legal issues surrounding Ripple as a potential cause. However, he noted that even positive legal developments in the second half of 2023 did not bring sustained improvements.
Recall that Ripple secured several victories against the U.S. SEC in the long-standing legal battle. Also, conclusively, Judge Analisa Torres ruled that XRP in itself is not a security. The decision pushed XRP to a high of $0.93 in July, but this rally quickly ended.
Post the legal judgment, XRP faced a substantial downturn against BTC and ETH in the following six months. Morgan questioned the community about the main cause behind this decline, dismissing the lawsuit and coin escrow activities as primary factors.
It bears mentioning that some XRP community members have asserted that Ripple’s consistent escrow unlocks and XRP sales have contributed to the downturn, alleging a case of price suppression. The Ripple CTO David Schwartz recently dismissed these claims.
Possible Price Growth Dependents
Morgan also believes these claims are not accurate, but continues to wonder what the actual factor behind the downturn is. In response to Morgan, Yasin Mobarak pointed towards the impact of negative propaganda within the crypto community.
Honestly, given the unfortunate successful propaganda against $XRP in the Crypto community, we should not look to existing retail investors for $XRP price appreciation. That will likely never come.$XRP will only grow from demand coming from utility, institutional users &… https://t.co/lzK7j6CXIL
— Yassin Mobarak ? (@Dizer_YM) January 18, 2024
Mobarak expressed skepticism about expecting price appreciation from existing retail investors, suggesting that this might never materialize.
Instead, he emphasized that the growth of XRP would depend on demand stemming from utility, institutions, and new retail investors that do not carry the same sentiments toward XRP as the current ones. He believes these sentiments are triggered by historical propaganda.
Donnie Murdo, another community member, shares a similar belief. Replying to Morgan, Murdo suggested that XRP’s downturn could be due to the hatred it receives in the crypto community. Morgan said this might be one of the causes, but not necessarily the main one.
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