Ripple (XRP) is currently trading around $ .29. It has dropped significantly from a level of above $ 3. Many of the ripple (XRP) investors think that it is seriously undervalued. The problem is that with such a significant fall and the absence of a rise thereafter, the question arises whether it is actually undervalued or whether the investors in ripple (XRP) are claiming that it is undervalued are too optimistic. We look into the facts to find more.
Is ripple (XRP) really undervalued?
One of the main reasons why ripple (XRP) was able to reach a high of $ 3.82 was because the XRP token was to be used in order to initiate the cross-border payments. The problem is that with the advent of the xCurrent system, it has become possible for the bank’s as well as financial institutions to use just the ripple protocol without the XRP token. Evidently, many of the banks and financial institutions prefer the xCurrent protocol.
On the other hand, a positive argument for the XRP token is that once the xRapid systems become functional, the use of the XRP token will increase significantly. This will ensure that XRP token will once again be at the center of cross-border payments. However, until now, the xRapid system is not fully functional. That is why the XRP token is not witnessing the same demand as well.
Another reason why XRP token is languishing at these levels is that it is not yet clear whether it is centralized or decentralized. Unlike the other cryptocurrencies, the node control stands with the company. Even though they use only a handful of nodes but those are closely guarded by the company as selected by the company. That is why there is confusion as to whether it is centralized or decentralized. The truth is that, as the number of nodes increase, it will be possible for XRP to become more decentralized. Up until that point in time, the confusion continues as to whether it is centralized or decentralized.
Lastly, the truth is that it might be undervalued but $ 3.82 was pretty significantly overvalued in the shorter term as well. It might reach there once again in the longer term but not in a hurry. That is why, even though it is languishing at the lower levels but the bull run case still continue. With increasing utilization of the protocols built by ripple, it will indeed at some point generate more demand for the XRP token. When that happens, the demand for the XRP token will increase once again which will be coupled with an increase in the price of XRP token as well.
Do drop us a line in the comments to let us know whether you agree with our opinion on ripple (XRP) or not!