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If You Invested $1,000 In Ripple’s XRP One Year Ago, Here’s How Much You’d Have Now

Investors who have owned stocks in the past year have generally experienced some big gains. But there is no question some big-name cryptocurrencies have left the stock market in the dust.

XRP’s Big Run: One cryptocurrency that has been a great investment in the past year has been Ripple’s XRP (CRYPTO:XRP).

XRP has been an exceptional investment going all the way back to 2013. However, after spiking to as high as $2.77 in early 2018, XRP prices spent much of the next two years trading back under 30 cents.

Ripple facilitates open-source payments, and XRP is the cryptocurrency that runs on the Ripple network. Why the popular Ethereum network is focused on Decentralized Finance, 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 concerned about the potential for hyperinflation have poured into cryptocurrencies as potential hedges.

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 virus spreading in China prompted concerns about a U.S. pandemic. On March 13, 2020, XRP plummeted to its pandemic low of 11.5 cents as global stock markets tanked. The good news for XRP investors is that the crypto bounced off that level as the stock market began to stabilize shortly thereafter and the government started printing money.

By November 1, XRP was back up above 23 cents.

XRP In 2021, Beyond: On Jan. 19, 2021, influential Tesla Inc (NASDAQ: TSLA) CEO Elon Musk added #Bitcoin to his Twitter bio and tweeted “In retrospect, it was inevitable.” Musk’s tweet sent the entire cryptocurrency market soaring, including XRP.

XRP ultimately hit a new multi-year high of $1.965 In April 2021, but has since pulled back significantly. Today, XRP is trading back down at $1.01.

Still, XRP investors who bought one year ago and held on have generated huge returns on their investments. In fact, $1,000 in XRP bought on June 1, 2020, would be worth about $5,031 today.

Looking ahead, it’s impossible to value cryptocurrencies like XRP because they produce no cash flow, pay no dividend or interest and are still used for only a tiny fraction of global financial transactions.

Up to this point, XRP has made for a spectacular speculative investment. But until the extreme volatility in the XRP market dies down, it will likely have a difficult time winning over investors looking for a safe, secure alternative to cash that won’t keep them up at night.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: If You Invested $1,000 In Ripple’s XRP One Year Ago, Here’s How Much You’d Have Now

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