A recent study shows that XRP has lost its appeal in Japan, where it was once more popular than Bitcoin.
Japanese crypto traders’ support for XRP has been famous to date. In fact, XRP was once more popular than Bitcoin in Japan. The reflection of this was seen in the period when the price approached $ 4.
On the other hand, the latest figures do not show a painful picture for XRP. It looks like Japanese investors aren’t as supportive of XRP as before.
On 20 June, market analyst Yuya Hasegawa of cryptocurrency exchange BitBank, licensed by the country’s regulatory body FSA, revealed that the market share of XRP held by investors is gradually decreasing.
As can be seen in the monthly dominance chart below, the dominance of XRP was 51.36 percent in Japanese yen as of December 2018. In the following period, the rate of XRP gradually decreased, while the rate of Bitcoin increased gradually. At the point reached, the dominance rate of XRP is 27.54 percent, while the dominance rate of Bitcoin is 51.74 percent.
Hasegawa notes that one of the reasons Bitcoin has outstripped XRP is its price performance weakness. Since January 2019, Bitcoin has grown close to 153 percent, while XRP has risen only 17 percent in the same period.
The analyst says another factor could be story deprivation in XRP. “The 2019 rally in the cryptocurrency market was partially fed with the narrative ‘safe haven’ associated with Bitcoin, and the January 2020 rally depended on the hedge against geopolitical risk and the prospect of multiple halves in spring.” Ethereum, which has historically been highly correlated with Bitcoin, underlined that it has a story about the Serenity update, which is predicted to take place in the third quarter of this year. “So the popular stories that have dominated the market over the past year didn’t exactly shed strong light on XRP,” said Hasegawa. commented.
What’s in the future for XRP?
On the other hand, the analyst says that XRP can be expected to provide a solid ground in the new normal of the Kovid-19 era. Hasegawa underlines that the demand for cross-border payments and remittances has increased, that Ripple, which released XRP, has an infrastructure that offers fast and cheap solutions, and the use of XRP has been growing quietly in some parts of the world.