xrp crypto stock

XRP – United States Dollar (CRYPTO:$XRP), Tesla Motors, Inc. (NASDAQ:TSLA) – If You Invested $1,000 In Ripple’s XRP One Year Ago, Here’s How Much You’d Have Now

XRP - United States Dollar (CRYPTO:$XRP), Tesla Motors, Inc. (NASDAQ:TSLA) - If You Invested $1,000 In Ripple's XRP One Year Ago, Here's How Much You'd Have Now
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Investors who owned shares in the past year have made some big gains overall. But there is no doubt that some big-name cryptocurrencies have left the stock market in the dust.

XRP Big Range: One of the cryptocurrencies that has been a big investment in the last year is Ripple XRP (CRYPTO: XRP).

XRP was an exceptional investment going back to 2013. However, after rising to $2.77 in early 2018, XRP prices spent most of the next two years trading at less than 30 cents.

Ripple facilitates open-source payments, and XRP is the cryptocurrency that runs on the Ripple network. Why is the popular Ethereum network focused on decentralized finance, while Ripple and XRP are more focused on cross-border business payments?

The biggest catalyst for XRP prices in 2020 was massive government stimulus spending to support the economy during the COVID-19 pandemic. Since the pandemic began, the government has spent more than $6 trillion, and investors worried about the possibility of hyperinflation have flocked to cryptocurrencies as a potential hedge.

See also: How to buy XRP

At the beginning of 2020, XRP was trading at just 19.2 cents. By the beginning of March, the cryptocurrency had risen to 23.1 cents as news of the spread of the virus in China raised concerns about a US pandemic. On March 13, 2020, XRP fell to a pandemic low of 11.5 cents as global stock markets plunged. The good news for XRP investors is that the cryptocurrency bounced back from this level as the stock market started to stabilize shortly thereafter and the government started printing money.

By November 1, XRP was back at over 23 cents.

XRP in 2021 and Beyond: On January 19, 2021, it was impressive Tesla Corporation (NASDAQ:TSLA) CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted, “In retrospect, it was inevitable.” Musk’s tweet led to a huge rally in the cryptocurrency market, including XRP.

XRP eventually reached a new multi-year high of $1,965 in April 2021, but has since fallen dramatically. Today, XRP is trading again at $1.01.

However, XRP investors who bought in a year ago and held on to it have made huge returns on their investment. In fact, $1,000 of XRP purchased on June 1, 2020, would be worth about $5,031 today.

Looking into the future, it is impossible to value cryptocurrencies like XRP because they do not generate any cash flow, do not pay dividends or interest and are still used for only a small portion of global financial transactions.

So far, XRP has made an amazing speculative investment. But until the extreme volatility in the XRP market subsides, it will likely struggle to win over investors looking for a safe and secure alternative to cash that won’t keep them up at night.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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