Recent studies indicate that XRP does not exhibit bubble characteristics, unlike Bitcoin and Ethereum. This is linked to the unique technology of Ripple.
Bubble Models in Cryptocurrencies
A study conducted by Fry in 2018 applied a rational bubble model to several cryptocurrencies, including Bitcoin and Ethereum. The results indicated that only Bitcoin and Ethereum showed signs of bubble-like behavior, while XRP remained outside these dynamics. This is supported by empirical economic analysis conducted by Ciaian, Rajcaniova, and Kancs in 2018.
Technological Advantages of Ripple
The absence of bubble characteristics in XRP can be explained by the technological features of the Ripple system. Specifically, the use of the Unique Node List (UNL) for transaction validation ensures high consistency and network efficiency. For block validation, at least 40% of nodes must match, creating conditions less susceptible to speculation.
Stable Profile of XRP
According to SMQKE, the situation with XRP indicates no bubble, which is further supported by research that explains XRP's behavior in the cryptocurrency market. The significant stability of XRP may be linked to its technology's functionality and lower susceptibility to speculative pressure.
The research highlights that XRP has a stable profile due to its technology, setting it apart from major cryptocurrencies and suggesting that its valuation is less influenced by speculation.
