Ripple Overtakes Ethereum as World’s Second Most Traded Cryptocurrency
Ripple’s market cap rose to $90 billion on December 29, 2017, to surpass Ethereum’s cap of $69 billion. The cryptocurrency has also been displaying solid performance during a period when other cryptocurrencies have been experiencing slump in prices. Such growth, however, is currently significantly behind to that of Bitcoin’s market valuation of $223billion as of press time.
Ripple’s new market value already put it in the same level with the world’s 30 largest banks. In fact, it is already ahead of Great Britain’s Lloyds Banking Group and Japan’s Mizuho Financial Group.
According to financial technology firm Coinsilium chief executive officer (CEO) Eddy Travia, Ripple’s phenomenal performance is driven by Ripple’s success in attracting major institutions to adopt the cryptocurrency.
“Ripple has done a good job of convincing big institutions to use their currency. The worry is that when the price goes up so much it moves the focus from the technology to just the speculation.”
While Bitcoin is currently enjoying the limelight as the most dominant digital currency in the market due to the phenomenal increase in its price, Ripple has slowly but gradually climbing its way to the top in recent weeks.
Several recent positive developments have triggered sharp increases in Ripple’s price, which already rose by nearly 300-fold in 2017.
Among these developments are the decision by three major Japanese credit card companies to use Ripple’s technology in their operations, and the announcement by a group of Japanese and South Korean banks that they are launching a pilot project to utilize the technology for sending money between two countries.
According to Ripple CEO Brad Garlinghouse, 2017 has been a banner year for Ripple as it clearly outperformed every other digital token due to its highly efficient payments mechanism.
“2017 has been the year of the digital asset, and XRP has clearly outperformed every other digital asset. The reason for that is that the market has realised that XRP is a highly efficient payments mechanism that is solving real world problems for real world customers with real money.”
With these late developments, it will be interesting to see if Ripple can sustain its phenomenal upward trajectory in the upcoming year.