XRP started the year with a bang. By January 4, 2018, XRP/USD was trading at a price of $3.75, the highest so far. But like other cryptocurrencies, the following weeks saw a steady decline in the value, owing to large regulatory pressures. In April 2018, reports of the global banking giant, Santander, launching its own blockchain-based application for cross-border transactions started doing the rounds. Since the application was to be built on technology provided by the Ripple platform, Ripple gained 5.24% against the US dollar by the end of the month.
In May 2018, the crypto coin again faced a setback, after getting into a lawsuit which claimed that the company raised millions through the sale of unregistered tokens. On May 5, 2018, the currency saw a drop of 0.49% against the US dollar, after a week of steady gains, settling to a figure of $0.90. By May 14, 2018, XRP/USD was at $0.76. There were reports of Japanese company Mitsubishi UFJ Financial Group (MUFG), the fifth largest bank in the world and a client of Ripple, launching its own MUFG coin.
In partnership with Apple, which will be using Ripple technology for building installment records and administration files, experts are predicting that the pair could be trading at $10 in the near future. On May 23, 2018, the pair is trading at $0.63.
Like all trading pairs, crypto coins are also affected by factors influencing fiat currencies. Take a look at the list of factors that drive the US dollar.
Ripple, the parent company, controls a majority of the XRP token supply, thereby controlling demand and supply in the market. The company owns 20% of the total supply of XRP tokens. While this is against the basic decentralised idea of a cryptocurrency, it also means that we might see lesser volatility in the market for XRP. The cryptocurrency market is prone to wide price fluctuations, but experts suggest that the lesser supply of XRP tokens, which are pre-mined, would mean lower volatility and the aspect of centralisation would bring in a kind of market moderation.
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