Japanese crypto investors are known for their passionate support of XRP. In fact, at one time in Japan, XRP was more popular than Bitcoin. However, official data from the Virtual Asset and Cryptomonetary Exchanges Association of Japan, or JVCEA, the self-regulatory organization approved by the Financial Services Agency, or FSA, shows that XRP is losing its appeal in Japan.
We have already seen the „XRP army“ shrink in the English-speaking region. As XRP’s price stagnation continues, the same is happening in the Japanese market.
On June 20, Yuya Hasegawa, a market analyst at the FSA BitBank-licensed crypto-currency exchange, analyzed whether XRP will ever claim the throne.
The XRP Army decreases as liquidations increase from USD 263 million in 2019
XRP’s market dominance was significantly reduced
The number of XRPs in Japanese yen dropped significantly over the course of a year.
Monthly Dominance Chart of User Cryptocurrency Holdings (in JPY)
In December 2018, XRP’s monthly domain was 51.36%, while Bitcoin was 34.5%. In the latest available data from February 2020, XRP’s domain was 27.54%, while Bitcoin was 51.74%.
Ripple, Brave and Huobi Join the PayID Global Instant Payment Network
Lack of narrative
Hasegawa explains that one of the reasons why Bitcoin outperforms XRP could be the price disparity. Since January 2019, Bitcoin Circuit price has increased by 152.79%, while XRP gained only 16.81%.
However, this can only be part of the story. Hasegawa also suggests that XRP lacks a meaningful narrative in the region:
„The upturn in the cryptcoin market in 2019 was driven in part by the ’safe haven‘ narrative associated with bitcoin, and the January 2020 upturn was also due to geopolitical risk coverage and the expectation of multiple halvings scheduled in the spring (again, closely related to bitcoin). Ethereum also recorded high monthly commercial value, but historically has a high correlation with bitcoin and is expected to go through a major network upgrade, Serenity, sometime during the third quarter of this year. So in some ways, the popular narratives that have been driving the market over the past year or so have not exactly been throwing a strong light on Ripple’s XRP.