With a drop of over 10% at the end of the first quarter of 2020, Ripple's XRP turned out to be the worst-performing altcoin among the top 25 cryptocurrencies.
A recently released report by Messari shows that Ripple's reduction in XRP sales has not helped revive the coin's battered prices.
Of the top 25 cryptocurrencies, except Bitcoin, Ripple's XRP had the worst performance during the first quarter of this year. The price of the cryptocurrency fell from around $ 0.1931 on January 1 and closed at $ 0.1737 on March 31, marking a decrease of more than 10% during the quarter.
Messari, a leading blockchain and cryptocurrency research firm, noted that this poor performance came despite the many alliances that Ripple forged during the quarter. The blockchain payments firm has partnered with several companies that will use the liquidity on demand (ODL) solution that leverages the cryptocurrency XRP.
Messari also noted that the BitMEX exchange launched its first ever XRP exchange deal that gave exposure to crypto assets on one of the most liquid cryptocurrency exchanges in the cryptocurrency market.
$ XRP was the worst performer in Q1 of the top 25 assets in our currencies sector excluding bitcoin
– Messari (@MessariCrypto) April 10, 2020
Ripple and XRP issues
Ripple has long come under fire for its XRP sales. However, the fintech firm drastically cut its quarterly sales last year in a bid to maintain a conservative approach.
For example, Ripple sold 13.1 million XRP in the fourth quarter of 2019, compared to 66.2 million sold in the third quarter of the same year, representing an 80% decrease. The company also halted programmatic mass sales due to persistent reports of inflated volumes.
However, Messari found that these efforts have so far been ineffective. XRP has continued a downtrend and remains stagnant below its January 2018 all-time high of approximately $ 3.80.
Messari also cites comments made by Ripple CEO Brad Garlinghouse during the first quarter of 2020, where he basically proclaimed that if it weren't for XRP sales, the company would not be profitable.
Looking to the future, the analytics firm argues that the ongoing class action lawsuit against Ripple regarding whether XRP should be classified as a security or not "It will advance in the foreseeable future."
Ripple's motion to dismiss the lawsuit was dismissed by Judge Phyllis Hamilton in late February.