XRP is one of the most popular cryptocurrency with a low price and seemingly high adoption with banks getting involved with it. It was the best performing altcoin in the bull run of 2017 with more than 15000% returns. Nevertheless, Ethereum has also been one of the favorite altcoin investments since its inception in 2014.
XRP Initiates Altcoin Run with Gains Over Bitcoin [BTC]
XRP added about $5 billion in the past two days as it gave Ethereum the run for the second position according to total market capitalization. The news of XRP based Exchange Traded Notes and ETPs not only promotes the trading of XRP but also clears a significantly big question on its classification as security of Ripple.
Ripple Inc. is a US-based company that claims to be working on the XRP ledger to build a global network of payment and settlements. According to its CTO, David Schwartz, the current system executes payments in two steps: payment execution and then settlement with the banks, which is outdated and needs improvement. Moreover, on Ripple’s utility, he added,
Ripple is building the foundation of a “payment system” which connects the banks together. While xRapid with XRP will be used as a settlement layer on top of the system.
Ethereum 2.0 and DeFi Projects A Brighter Future for ETH
Moreover, Ethereum is one of the most popular names in cryptocurrencies as well. Due to its GPU mining history and early launch, it has become a household name in the crypto-sphere. A Twitter user, alias BTC_Macro reiterated this sentiment in a tweet,
“$ETH is like an index fund of altcoins.”
Currently, Ethereum is under development to release its new blockchain, Ethereum 2.0, which will incorporate all the existing functionalities of the blockchain on a more advanced and scalable chain. The update was recognized as a necessity, as during the bull run of 2017 serious questions rose on its capacity of executing smart contracts and transactions on a global scale.
The most important features to be implemented in the update are Proof of Stake (PoS) and sharding. Recently, Ethereum released the public test version of this chain which included staking. This is a huge shift from the inefficient Proof of Work (PoW) protocol. Nevertheless, the PoW has been responsible for the globalization and decentralization of the cryptocurrency.
Furthermore, the final phase of Ethereum 2.0 is expected to be released in 2021. However, Ethereum is also making progress in its utility and adaptability with DApps and DeFi. Decentralized Finance is a new financial system that aims to provide a plethora of financial products on an interoperable platform. According to reports, over 2 million Ether [ETH] have already been staked to build the DeFi system.
Last but not least, a rise of about 0.1 dollars on XRP corresponds to an increase of about $5 billion, while a rise of $10 on Ethereum corresponds to a rise of approximately $1.5 billion in its market capitalization. The market capitalization of Ripple and Ethereum is around $18 billion and $23 billion respectively on 15th May 2019.
Which cryptocurrency will lead the altcoin markets, XRP, Ethereum or some other cryptocurrency? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com