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The reason why Ripple went into the red again before bouncing today

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Ripple

The cryptocurrency market is at that time when things are going sluggishly, again. Not much to complain concerning the recent market crash after a little surprise earlier, the market hasn’t been at its best; this means that a token sell-off by any digital asset might have some detrimental effects. That is probably what is going on with Ripple (XRP) at the moment even though it recently experienced a sharp price surge and remains in the third position considering the market capitalization.

Ripple has profited from the XRP’s value over time and from various projects which includes Xpring. It has also made many profits by investing in other businesses. One of the co-founders of Ripple, Jed McCaleb, who also started the cryptocurrency exchange known as Mt.Gox, and Stellar (XLM), has decided to accelerate the sales of XRP tokens he holds.

It is important to know that McCaleb left Ripple a few years back to start his very own blockchain platform. However, he has been selling XRP tokens for quite some time but has just decided to increase the sale of his XRP tokens now. The announcement has added more pressure on Ripple even after it experienced more than a 70% plunge this year alone.

McCaleb’s sell-off is not good news for Ripple’s XRP investors. Let’s recall that Ripple still is a start-up company; thus, a sudden sell-off could make the company face severe difficulties.

XRP is one of Ripple’s product, and it is worth $29 billion currently (the total market cap); not to forget that the token attained a worth of $118 billion in the past. XRP’s value has decreased as a result of the market plunge this year.

Despite getting crushed throughout this year, the cryptocurrency experienced a huge surge about five days ago but only to slow down again as it lost about 15% of its value in the last 48 hours again before going up just now after the announcement by Coinbase that they will be listing new cryptocurrencies. Many are speculating that the rapid sell-off of XRP tokens by McCaleb has caused the Ripple token price to go down sharply again.

On the other hand, McCaleb stated this through an email:

I’m not selling more than I have agreed to with Ripple.”

That was the only statement of McCaleb, and he has refused to say anything further.

Daily Market Capitalization

In 2012, Ripple was created with the sole aim of providing the best solution for cross-border payments. The blockchain start-up raised more than $90 billion through venture capital companies such as Andreessen Horowitz, RRE Ventures and Founders Fund at the beginning of the year – besides the $60 Billion XRP tokens at hand.

https://twitter.com/KyleSamani/status/1044355792973905921

In 2016, McCaleb signed a deal with Ripple, but the deal is tied to daily capitalization which is based on a certain percentage of the average daily volume of XRP which was reviewed to make sure the market was orderly. After the deal was struck, McCaleb and his family owned about 5.3 billion tokens, which includes two billion donor-advised funds.

Even though McCaleb possessed 7.3% of the tokens, he sold just a little part of it – about 0.75% capitalization. Now, this is McCaleb’s third year of selling XRP tokens. It is necessary to know that by August, his sales grew. He started selling 499, 312 XRP daily. And now, at one point in a week this month, McCaleb sales increased to more than $100,000.

As per the Wall Street Journal publication,

average daily trading volume of XRP on the Ripple consensus ledger… hasn’t changed considerably in recent months and not enough to account for the change in his daily sales.”

In a response online, Ripple has refuted the assertions, further emphasizing that its former co-founder does not have a direct influence over his XRP tokens which are being held under the “custody account” with the agreement signed in 2014, by both parties.

But seeing the sudden fall in Ripple right after the McCaleb XRP sell-off news spreading in the market, many started questioning that it could be the reasons behind recent Ripple crash. At the time of press, the cryptocurrency trades in green again, thanks to today’s Coinbase announcement. As it looks, the coin wants the number two spot back. Let’s see how high Ripple surges this time.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Photo by Joshua Rawson-Harris on Unsplash

Altcoins

Solana Price Surges Beyond $100, Dethroning Ripple and BNB To Secure Fourth Place

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Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.

SOL Outlook

Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.

The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.

This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…

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Altcoins

Solana Price Skyrockets to 20-Month Peak Amidst Memecoin Frenzy

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Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.

Catalysts Behind SOL’s Rally

Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.

The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.

Cited figures provided by DeFi aggregator DeFiLlama

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Altcoins

Solana Price Breaches $60 Amid a Symphony of Bullish Indicators

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Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.

SOL’s Bullish Cues

Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.

In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.

Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…

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