SOL Moves Fast to Push XRP to 7th Place – Why Did Ripple’s Original Token Fail?

Less than three weeks ago, Solana (SOL) Uniswap crashed and became part of the top 10. Since then, SOL has risen much faster. In fact, it even outperformed USDC, Dogecoin, and Polkadot on the charts.

At the time of writing, XRP is the latest SOL victim. Both of the above categories have alternated on CMC’s market capitalization chart in the past few hours. But so far, SOL has completely outperformed XRP with a market cap gap of more than $ 7 billion.

Source: Coinecko

SOL is now at an amazing 8.429% YTD and m. gone upDespite the market sell-off for the past two days, the cryptocurrency is up another 9% today.

Source: TradingView

Why did XRP fail?

The state of most of the XRP indicators is unfortunate at the time of going to press. First, let’s look at the MVRV rate. It took more than 10 days for this index to rise from 1.05 to 1.82. However, all to no avail.

The MVRV has fallen back from its high to the above-mentioned low in the past 24 hours. Simply put, this shows that HODLer XRP wasn’t very profitable compared to a week ago.

Additionally, XRP was hovering in positive territory on the DAA price divergence chart until recently. In the past 24 hours, however, the index has not only entered a bearish zone, but is comparable to the extent of the decline seen in the second half of May.

In addition, the average age of XRP tokens has risen steadily over the past few weeks. Two index Important – average coin age and average investment age in dollars – are moving roughly in the same direction.

However, this trend has started to change so far. Both curves are falling and defying the upward trend. As the index “Average Investment Age in Dollars” is falling, it can be argued that older tokens have started to move.

Most of the price declines to date have been accompanied by declines in the above indicators. If both curves continue sloping down from here, it essentially means the end of the day for XRP.

Without a doubt, XRP has carved out a niche for itself in the cross-border payments ecosystem. However, the adoption rate has stalled recently due to regulatory uncertainty. On the other hand, Solana’s rollout has been quite impressive so far, with strong interest from institutional actors.

Based on XRP’s on-chain metrics, it would be fair to argue that SOL has the potential to stay in the top 6 for long and compete with BNB.

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Annie

According to Ambcrypto

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