Ripple’s price: take decisions in real time!
Ripple is a business that, through blockchain technology, developed a system to trade assets through IOUs and its token, XRP.
Understanding the price of Ripple
What is Ripple ?
The company, Ripple, started with an observation: to transfer money these days from one bank to another requires time, money and the services of multiple intermediaries. For example, if you were to send money to someone abroad, the money will be handled by several banks and that person will only receive the funds after several days in the best-case scenario but more often in a few weeks. Ripple brings a solution to the table, one that facilitates worldwide, secure transactions that are instant and for a pittance in cost, irrespective of how much is sent.
If two banks both use the Ripple protocol, an international transfer will take but a couple of seconds. Logically, it would be the same for national transactions.
Faster and cheaper international payments – it all relies on a shared public database that uses a consensus mechanism enabling decentralised payments, trades and remittances. This protocol is highly valued by many businesses and institutions because it allows all types of goods and assets, including precious metals, to be traded. Moreover, the system’s reliability, security and speed (transactions are processed within 5 seconds) build up trust among users: a major contribution to the stability seen in Ripple’s price over time.
At the moment, one of the solutions offered by Ripple to enable speedy cross-border bank payments is Xrapid. It is a protocol that places the XRP token at its core to act as a bridge. To understand fully how Ripple operates and how the XRP token is used, read our article dedicated to Ripple.
Ripple Price History
XRP was listed on cryptocurrency exchanges from the moment it was launched; Ripple’s price was then set at ten cents. For two years, this price moved very little and XRP had little demand. It spent some months at half a cent before rising to 30 cents.
The price of Ripple stabilised for a time until the spring of 2017. In the month of May, XRP jumped to €0.40. But quickly fell losing over half its value. By the end of the year, the cryptocurrency bubble had also lifted XRP which recorded its all-time high of €3.65 on 5 January 2018. Ripple’s price had increased by a factor of 360 in one year!
However, the market crashed in 2018 and the XRP token sank to €0.25. It was not until 2021 before the price of Ripple rallied again and one token passed the symbolic €1 mark… before falling back down again. Since the start of 2022, the price of Ripple has been unable to get above €1. It has found support around an average price of €0.75.
How has Ripple’s price changed?
An analysis of Ripple’s price history shows that the value of XRP can vary little over extended periods. This does not prevent the token from undergoing significant fluctuations during which the price can skyrocket (over 1,000% in a few days) or collapse almost 90% in a matter of months, just like it did in 2018.
Hindsight shows that it is difficult to anticipate how Ripple will perform. But it is still possible to make out some trends. The asset re-entered a bull-market cycle in 2021, crossing the €1 threshold before consolidating around €0.85 at the end of the year. In the first few months of 2022, this value has varied little.
It is also important to remember that Ripple operates differently to other cryptocurrencies, like Bitcoin. XRP cannot be obtained by mining. The Ripple company issued 100 billion XRP at the time the project was created. There are currently a little over 46 billion tokens in circulation. The Ripple company regularly sells up to 1 billion XRP on the market every month. This way of operating does not really favour an appreciation in the unit price of an XRP token. A likely outcome is that Ripple’s price will remain stable for some time to come.
Having said that, if banks were to significantly increase their use of the Ripple network, this would be a positive sign for investors and help the price of Ripple to climb. Considering the confidence in the system, this possibility cannot be ignored. Only time will tell.
History of Ripple
The Ripple network as we know it today was founded in 2012. But the first work on the project dates back to 2004. Back then, the company was actually called OpenCoin. That name was changed to Ripple in 2015. The company developed the Ripple Transaction Protocol (RTXP), based on concepts by Ryan Fugger, which allows banks to perform international transactions very quickly.
It was in 2013 that the company created its own form of digital currency: the XRP. It is this asset that is traded on marketplaces. So calling it Ripple remains a shortcut. Between 2013 and 2015, the company, under the name Ripple Labs develops projects related to its protocol and establishes many partnerships, including with banks such as Bank of America or Fidor Bank.
In 2016, as Brad Garlinghouse became CEO of Ripple, the company continues its development and obtains a virtual currency license from the New York State Department of Financial Services.
In 2017, partnerships with numerous banking and payment institutions continue with the goal of providing Ripple customers with an instant global payment service.
What determines the price of Ripple?
The price of the XRP token and thus the value of Ripple depends on the state of supply and demand in the market. The price is not influenced by any economic or financial policy. Only the actions of investors (buying and sell) have an impact on how XRP moves, which explains why this cryptocurrency is so volatile. In simple terms: the price of Ripple rises when demand is high and it falls when demand is low. Accordingly, Ripple’s price can go up or down at a moment’s notice.
Nevertheless, Ripple has a fixed number of tokens available to investors. In fact, unlike other cryptocurrencies, XRP cannot be mined (i.e., created); the 100 billion XRP tokens issued when the project was created is the cap. Today, some 46 billion XRPs float freely on the crypto market. Each year, some one billion more tokens are placed by the Ripple company on the market. This prevents the unit price from appreciating but does lend itself to stability.
What factors play on the price of Ripple?
Although Ripple’s price is not susceptible to the decisions of governments and banking institutions, it is not immune to market fluctuations. Different factors can influence the strategies adopted by investors and thus have an impact on Ripple’s movements, including:
- the asset’s reputation;
- what laws and taxes apply (different for each country);
- what XRP tokens can be used for or what they can buy;
- the prices of other cryptocurrencies, like Bitcoin;
- how Ripple is portrayed by the media and seen by the general public (positivity here can persuade investors to buy XRP while negativity will cause selling or avoidance).
This is why it is important to closely monitor Ripple’s price and act prudently when confronted by quick price changes in Ripple.
How much does one Ripple cost?
So, how much is one Ripple? In other words, how much do you have to pay to buy one XRP token? To find that out, we have to look at the Ripple/euro exchange rate. Since the start of 2022, this exchange rate varied between €0.72 and €0.82 for 1 XRP. This means you could have bought an XRP token for an average price of €0.77.
To follow in real time the price of Ripple and know how much one Ripple is worth at any given moment, the easiest thing is to check out the XRP/EUR chart at the top of this page. You will find all the essential information there: the price of Ripple at that moment, whether it is moving up or down, the XRP price chart, it high and low points for the day, etc.
Knowing the exchange rate of Ripple for euros is important since you usually have to use traditional currencies to buy XRP tokens. There is another option though: swap other cryptocurrencies for Ripple, such as trading bitcoins or litecoins for XRP.