XRP Plunges 61% from its Peak, Can it be the Optimal Defense for My Assets?

▲ Ripple (XRP) ©

Market interest is high regarding whether 'XRP (Ripple)', which broke free from regulatory shackles and set new all-time highs, can be a perfect portfolio hedge against risk, replacing traditional safe-haven assets like gold or silver. However, experts warn that its extreme volatility could deepen financial worries instead.

According to crypto media Watcher.Guru on April 26 (local time), Ripple's long-running lawsuit with the 'U.S. Securities and Exchange Commission (SEC)', which began in December 2020, is expected to conclude successfully in 2025, significantly boosting investor sentiment. As a result, XRP soared to '$3.65' last July, marking a new all-time high after approximately seven years.

Typically, a hedge means an asset that defends its value even amidst market instability, much like gold and silver in late 2025 and early 2026. However, virtual assets have an inherent weakness where volatility is further maximized when uncertainty increases. XRP, too, has experienced sharp price fluctuations, plummeting over '61%' since reaching its peak.

Even 'Bitcoin (BTC)', the elder statesman of the cryptocurrency market, is not in a significantly different situation. Bitcoin is often mentioned as a potential hedge but has not been able to avoid the pressure of a bear market. Bitcoin, which hit an all-time high of '$126,080' last October, has currently fallen by '38.6%' from its peak, clearly exposing the limitations of a risky asset.

The media points out that virtual assets like Bitcoin and XRP are much more suitable for long-term investment purposes rather than as short-term volatility defense tools. Indeed, XRP has risen '52,584.3%' since 2014, and Bitcoin has recorded an astonishing cumulative return of '114,130%' since 2013.

In other words, virtual assets can only serve as a hedge for long-term investors who entered early years ago, for whom short-term cycle downturns are not significant. The media concluded that buying cryptocurrencies to defend against volatility when the market is unstable is likely to bring greater concern rather than financial stability.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*