- XRP as an asset is facing backlash from top market analyst Crashius Clay.
- Despite the claims, XRP is ranked as the altcoin with the most ETF filings.
XRP, the cryptocurrency associated with Ripple Labs, has recovered above the $2 mark multiple times this year. While this demonstrates its resilience, prominent trader Crashius Clay on X said XRP is a memecoin in a mask.
Crashius Clay Says XRP Possesses Memecoin Traits
“XRP is the biggest memecoin in disguise. It has little to no activity or revenue on the chain, Just like a memecoin,” Crashius Clay wrote in a post on X.
The trader argued that the typical XRP retail investor is financially drained and incapable of sustaining demand. According to the trader, wealthy investors avoid investing in XRP for fear of uncertainty.
Crashius Clay added that XRP is experiencing massive sell pressure. He attributed this state to the Ripple team, early investors, insiders, and long-term holders eager to offload assets. Therefore, he questioned the market’s ability to absorb further sales due to a lack of liquidity and new buyers.
Furthermore, the trader argued that XRP shares many traits with memecoins, such as insufficient on-chain revenue and minimal network activity. Clay emphasized that this lack of utility supports his view that XRP is the “biggest memecoin in disguise.”
He suggested that XRP’s current valuation reflects hype and legacy momentum rather than fundamental worth. Clay shared his trading activity, which showed short XRP positions totaling $7.5 million on XRP in March. According to the trader, these were some of his career’s “easiest” trades.
In an April 9 post, Clay disclosed he had amassed $1 million in profit on these shorts. He hinted that he had no plans to stop shorting XRP trades soon. However, he said XRP is heavily overvalued and susceptible to a crash, with its market hovering around $100 billion.
He compared XRP to the Shiba Inu (SHIB), which once peaked at a $40 billion market cap before crashing to $4 billion. Clay believes XRP could face a similar correction.
XRP Still Keeping the Fire
Clay’s criticism of XRP follows the coin’s recent price drop alongside the broader market. To provide context, XRP dropped to around $1.70 on April 9, after a three-day downtrend streak. As of this writing, XRP was trading at $2.05, down 4.5% over the past 24 hours.
Despite the recent price drop, XRP has proven more resilient than most major digital assets. XRP has only declined by 2.58% Year-to-date, whereas Bitcoin (BTC) has fallen by 10.6%. Ethereum has seen a dramatic 52.88% drop, while Solana plunged 33.66% in the same period.
Moreover, as our previous news brief mentioned, XRP is leading the exchange-traded fund (ETF) race with 10 filings. Data and insights from research firm Kaiko show XRP is possibly closer to ETF approval than rivals like Solana, Dogecoin, or Litecoin.
In a previous article, we discussed that XRP shows signs of a strong bullish breakout this April. If it maintains a consistent growth rate, analysts project that XRP could reach $3.24 by the end of Q2 2025.
Analyst Zach Rach made a more bullish forecast, saying XRP could easily hit $15. This prediction is anchored on JPMorgan’s estimation of the XRP ETF.
