Ripple (XRP) has officially done it. Yesterday’s up-and-coming coin is now an institutionalized cryptocurrency. This crypto-coin has finally surpassed Ethereum (ETH) when it comes to market value. This California-based cross-border payments blockchain is now sitting comfortably in second place.
How did Ripple (XRP) Jump to 2nd Most Valuable Cryptocurrency?
On Friday, this coin soared about 56 percent – sealing Ethereum’s fate as temporary third-place filler. For anyone who has invested or even followed Ripple (XRP) and its growth, this probably comes as no surprise. This altcoin has enjoyed a fantastic few months of gains.
Just in the past 24 hours, its surged about 27 percent higher. In the last seven-day period, this cryptocurrency has added 97 percent to its price. At $2.24 a piece, this coin has climbed 864 percent compared to one month ago.
Its total market value is $87.2 billion, well above Ethereum’s $66.8 billion. Ethereum has seen its price sink by about 9 percent in the past 24 hours. It has only gained 67 percent in the last month.
While the massive gains seen in Bitcoin (BTC) have soaked up most of the world’s attention this year, Ripple has been able to substantially boost its legitimacy. Just recently, a few major financial organizations have adopted its technology. Last week, three of Japan’s biggest credit card companies did the same.
Ripple’s cross-border payments technology uses blockchain innovation — an electronic record-keeping solution — to move cash right away. Blockchain is a core segment of digital forms of money, for example, Bitcoin and Ripple’s own particular XRP.
“Ripple has completed a great job of persuading huge organizations to utilize their currency,” said Eddy Travia, CEO of Coinsilium.”The stress is that when the cost goes up so much it moves the concentration from the technology to just the speculation.”
Ripple’s blockchain technology is super fast. Payments are completed in less than 15 seconds – sometimes less than 10. That’s lighting quick compared to the Swift system, which was made 44 years back by a consortium of the world’s greatest loan specialists. That one takes three whole days.
Why Has Ripple (XRP) Been Gaining So Much Lately?
The current rally in the cost of XRP began after a group of Japanese and South Korean banks a week ago declared the launch of a pilot plan to utilize Ripple’s innovative technology for sending coins between the any two points on the planet. Ripple has significantly more XRP available for later than is traded on an open market, giving it a reserve worth about $115bn, which it intends to use to energize banks and other substantial financial institutions to utilize its innovation.
The US Company has joined more than 100 financial institutions to utilize its blockchain technology to move huge piles of digital currency internationally. The company has different solutions. One enables clients to purchase and send XRP. They can move cash immediately across borders and among different national currencies. Another uses a blockchain record to track and coordinate exchanges between banks’ own particular records.
“2017 has been the year of the digital asset, and XRP has clearly outperformed every other digital asset,” Brad Garlinghouse, Ripple’s CEO, told the Financial Times. “The reason for that is that the market has realized that XRP is a highly efficient payments mechanism that is solving real world problems for real world customers with real money.”
He said that “people are increasingly realizing that bitcoin is not going to be a panacea for all these payments problems that people imagined it would solve”. He added: “Payments with XRP settle in a few seconds, but if you buy a cup of coffee with bitcoin it will be cold by the time the payment has been settled.”
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.