How the Price of Cryptocurrencies is Formed on the Example of Ripple Coin?

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The cryptocurrency market is especially attractive for investors and traders due to its volatility. Unlike traditional finances, controlled by the government and central banks, the digital market does not depend on these institutions, so the crypto price is formed based on other factors:

  • The supply and demand balance
  • Competition
  • Technology and usefulness 
  • News 
  • Investors sentiment 
  • Emission.

When the crypto market intertwines with such real sector economy, it becomes a subject to such institutions as the SEC. That is what happened with Ripple. Let’s see what the Ripple live price depends on.

Ripple Coin 

Ripple was developed by the Ripple Labs financial company focused on providing payment systems for financial establishments and businesses.

The network uses the XRP token that helps to convert and transfer finances to any part of the world fast and cheaply, unlike the traditional banking system, which usually needs a lot of time and intermediaries to send money abroad. 

XRP tokens are not mined. It allows charging minimum fees of $0.00001 per transaction. All the XRP tokens were  issued in all their amounts on the day of launch. That means the emission is limited, and limited supply supports the demand for tokens.

The Ripple platform has a rich technology already used by around 200 companies in the world. Besides, many large market players hold XRP, which also does not allow the Ripple coin price to drop. If it does not drop, then why does it not grow? All the matter in legal proceedings with the SEC. For a few years, Ripple has been trying to settle the lawsuit filed by the SEC, demanding Ripple Labs to claim the XRP token as a security. This slows down the project’s development and does not allow it to work on a full scale. That is the important factor that impacts the XRP value.

Regardless of all the difficulties, XRP is one of the top-traded assets. Ripple trading is available on all crypto exchanges, including WhiteBIT. It makes it possible to buy Ripple with fiat money and then trade XRP with other digital assets at low fees. 

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