In rally between years, Ripple did not only take a value over one Euro, but took Ethereum’s second place!
Since the beginning of December, a giant was awakened from sleep with Ripple. From a price of 20 cents and now almost 1.40 euros – we are speaking about a sevenfold increase in value! With a supply of XRP 38 billion, the market capital was able to increase accordingly, so that Ripple at least temporarily knocks Ethereum off the throne. Currently, however, the difference in market capital is marginal; both are around 60 billion Euros!
How can this growth be understood?
Certainly hedging by traders in the crypto sector also plays a role here. In 2017, after Bitcoin’s large increase, a revival of Altcoins and XRP was regularly observed.
But something else is currently playing a major role: The recent political developments in South Korea led to some uncertainty on the crypto market. Ripple is attracting considerable interest, especially in Japanese and South Korean banking world, many of these “Bitcoin of the banks” seem to be a safe investment.
The question remains whether the price continues to rise. Although, some circles in the Internet are already forecasting a flip-flop – that Ripple will soon take off Bitcoin from the throne ! Bitcoin can claim capital of 200 billion euros, while Ripple currently has a market capital of 60 billion euros. The trading volume also differs almost by a factor of three.
Although, this is low compared to other crypto currencies, the transaction costs of the Ripple network don’t have to be comparable to those of Bitcoin or any other network, but must be significantly less expensive than the previous payment networks such as VISA or MasterCard. A large part of the XRP are therefore secured in an escrow in order to have the existing supply under control.
We will continue to watch Ripple’s development, but right now, as is so often the case with dramatic price increases, you should not rush and invest a lot of money quickly!
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Categories: Crypto Currency