Stellar (XLM) and Ripple (XRP) Head for Significant Losses in 2019
The assets are the only coins with double-digit losses in 2019, despite the relief rallies for multiple altcoins.
Stellar (XLM) and Ripple’s XRP are looking more and more like the exceptions on the crypto market. The coins are the only two big losers among top 10 coins and tokens. Both tokens lost close to a third of their value by November.
Stellar and Ripple have a thing in common, even beyond using the brain work of Jed McCaleb. Both assets aim to disrupt legacy systems, while trying to differentiate themselves from the purely crypto community.
The projects try to sell their system for distributed ledger accounting directly to banks and companies. So far, however, the expected adoption has lagged. Additionally, both assets may face selling pressures, as previous enthusiastic owners may shed the coins.
XRP slid to $0.27 after the Swell conference failed to come up with new encouraging trends for the coin’s adoption. XLM also came out weaker out of its Meridian conference, sliding to $0.78.
For XLM, the recent coin burn failed to bring the expected price rally, only causing the price to recover by a cent. For now, the XLM coin burn has not been reflected in the circulating supply, allowing the asset to line up among top 10 coins. XLM still holds up a market cap above $1 billion, though the new total supply is yet to be recalculated and reflected.
Adoption for both types of assets has relied on relatively strong communities. The chief worries about the two coins are the selling pressures, as previous enthusiasts abandon their holdings. At this point, the future of the coins is uncertain, and a rally has failed to bring the coins to a higher range.
Both Stellar and Ripple may continue with giveaways and popularization efforts. But for now, the real-world usage of the assets has been relatively small. There is also no organic demand for buying coins, as giveaways supply enough new assets to banks or other organizations.