However, XRP seemed to follow a trend for 2020: by year’s end, its value fell. Some experts suggest the cryptocurrency will recover in 2021, and I can’t help but agree.
Why XRP has struggled in 2020
XRP is one of the key players of the alternative cryptocurrency market. From Nov. 1–24, it actually managed to grow by about 280 percent on the Coinbase trading platform. This took XRP’s value from $0.24 to upwards of $0.92.
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However, in the weeks since Nov. 24, XRP fell 20 percent, and that was just the start. There are a few reasons for this, namely low trading volume, market uncertainty, and news urgency that prompted large swaths of sell-offs.
A new altcoin recently came on the market, affecting XRP. The new currency is called Spark, and all XRP holders received Spark tokens on Dec. 12.
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“Each Bitstamp customer that holds XRP will receive new Spark tokens as part of the airdrop. How much Spark you are going to receive depends on how much XRP you have in your account on 12 December 2020,” Bitstamp said in a press release.
This move briefly increased XRP trading volume, but it wasn’t everlasting. A sell-off soon followed.
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