The third edition of Ripple’s SWELL event takes place on November 7 and 8. The company is expected to come up with new announcements about the progress of the XRP project during the conference. The XRP price is volatile in the run-up to the event, resulting in a sharp drop this morning.
Ripple brings good news, XRP rate is falling
Just before SWELL started the XRP price climbed to $ 0.315. However, the recovery turned out to be short-lived: not long after the opening (conducted by CEO Brad Garlinghouse), the rate fell back to $ 0.275. The price fluctuation in the run-up to the event is not surprising, but the sudden fall is certainly striking. Yesterday Ripple came to its website with the announcement that it has now attracted more than 300 customers for RippleNet. A simple calculation shows that the American company managed to attract more than 100 new customers in the past year. During the 2018 edition of SWELL, Garlinghouse said that the customer total had reached 200.
According to the publication, the number of transactions on RippleNet, the company’s payment network, has increased tenfold compared to 2018 this year. In the message, Team Ripple also says there is a lot of demand for the On-Demand Liquidity (ODL) product that was launched last year:
In less than a year since the launch of ODL, we have seen tremendous growth and interest from customers, with 24 registered customers who want to use the product. […] There were more than 7 times more transactions with ODL at the end of October than in the first Q1 (2019, ed.).
In the announcement on the website, therefore, good news could be read for XRP investors. Not long after, the rate climbed over the $ 0.30 mark and reached a top of $ 0.315. However, even before the first keynotes started on SWELL, the euphoria seemed tempered and the XRP course started its way down. This morning around 5 am EST, the rate reached a point of $ 0.275, the lowest price since the beginning of this month. At the time of writing, an XRP token is being traded for $ 0.291: a 3.7% drop on the 24-hour chart of Coinmarketcap.
Why is the rate falling?
So it doesn’t seem very logical that the XRP course collapsed that way before the start of the event. Perhaps many investors had higher expectations of the announcement during the event. This year, SWELL is being organized by Ripple for the third time, and expectations were high. Last year the big announcement was the launch of xRapid, which has since been renamed ODL. Although this product managed to attract more than 20 customers within a year, the announcement seems to be less than expected.
Nevertheless, the price fall seems premature. SWELL is a two-day event: a number of panels and keynotes are still on the agenda for tomorrow. It is not inconceivable that Ripple will come tomorrow with news that may be a reason for more positivity in the community. So far, it has been a very disappointing year for XRP. Bitcoin was largely unable to follow during this summer’s rally, which led to much discontent among XRP holders. According to them, the disappointing price development is partly due to the fact that Ripple personally manipulates the price. According to many, it is, therefore, a bad fact that the company itself still has the largest stock of XRP of everyone, albeit in an escrow. In an interview, Mati Greenspan recently announced that, according to him, this escrow is not an ideal situation either, because it seems to be pushing the course.