What's ripple & why is it setting cryptocurrency world on fire?

A relatively cheap digital currency called ripple used to be on the crypto market periphery. Ripple has made serious strides this week, pushing litecoin aside by market cap value at a price 500 times cheaper.

The world’s fourth most valuable cryptocurrency was trading at 57 cents at 10:19 GMT on Thursday, having more than doubled in the last 48 hours, according to CoinMarketCap data. Ripple has seen its price grow by almost 9,000 percent since the beginning of the year, when it was trading at just $ 0.006 per token.

Though the price for ripple is more affordable than its rivals, ripple’s market cap has neared $ 22 billion, compared to litecoin’s $ 16 billion trading at $ 297.83, and IOTA’s $ 11.5 billion at $ 4.13. Ripple’s rally dragged litecoin down to fifth among the most valuable cryptocurrencies.

Ripple was launched in 2012 in California and is currently listed on 30 exchanges. The digital currency is closely connected to the banking world, as it was initially designed as a worldwide payment and transmission system. Ripple, the company behind the cryptocurrency, has licensed its blockchain technology to over 100 banks as of October.

Last month, American Express introduced instant blockchain-based payments using ripple for US corporate clients sending funds to UK- based businesses, which bank with the British branch of Santander. At the same time, Michael Arrington’s $ 100 million cryptocurrency hedge fund will be reportedly valued in ripple’s XRP.

Experts see no apparent reasons for ripple’s recent rally other than positive momentum. The launch of bitcoin futures last weekend pushed the price of bitcoin to new record highs with the rest of the top virtual currencies, including litecoin and ethereum following the leader, as investors began to believe in the potential acceptance of digital assets.

“The launch of bitcoin futures by Cboe Global Markets earlier this week has been seen as a celebrity endorsement and a stamp of approval on crypto. Ripple is very promising … and many people are excited about this particular coin. It is in a powerful position and serves as a payment network allowing you to transfer dozens of different currencies worldwide at lightning speed,” said Standpoint Research’s Ronnie Moas, as quoted by CNBC.

Let’s block ads! (Why?)

RT Business News