The world order of cryptocurrency has finally changed. XRP that has been in third place all this while behind Bitcoin and Ethereum finally has zoomed past Ethereum to take on the second place on the list of cryptocurrencies ranked by MarketCap as reported on Coinmarketcap.com. This rise to second place is a combination of XRP’s new product introduction xRapid and Ethereum’s tussles with its own technology and scalability.
xRapid and strong fundamentals help to skyrocket XRP’s prices
Finally, the ghost of being tagged as a security seemed to have vanished around XRP and Ripple as the coin marched relentlessly forward and broke the USD 0.5 mark on the price charts. The coin dint stops there and went beyond USD 0.75 posting a gain of more than 100% in past 24 hours. This gain was symbolic in its way as the XRP coin finally took over the second place Ethereum and zoomed past it on the list of cryptocurrencies arranged by the highest market cap. While going to press, XRP’s MarketCap was at USD 30 billion compared to Ethereum’s USD 23 billion showing the spike the coin has had in past 24 hours
On XRP’s side, this rise is credited to the latest news about a partnership with the American PNC Bank bringing one more global bank on RippleNet and expanding its reach and network. But a much larger news that is contributing to this price rise is the proximity of launch of xRapid, a new Ripple product. Sagar Sarbhai, head of regulatory relations for Asia-Pacific and the Middle East, earlier this week told CNBC that Ripple Labs is close to launching a new product that could help banks speed up transactions using XRP.
“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production,” Sarbhai said.
xRapid is designed to work as a bridge between different currencies around the world, allowing payment providers and banks to process faster cross-border transactions. Earlier this year Ripple Lab’s chief executive Brad Garlinghouse boasted there would be “dozens” of banks using xRapid by the end of 2019.
Ethereum’s pain with technological and scalability issues continues to haunt
While XRP is doing wonders, Ethereum is wrapped with problems that don’t seem to be ending. The coin has a lot of factors surrounding its scalability. Also, a lot of factors might be that the ICOs which were on Ethereum seemingly are cashing out, a strong dollar, and a relatively high inflation rate of 7% for Ethereum. Arguably, the delay of Casper might be another factor. The market was expecting its imminent release until a change in design to make sharding development easier.
Well, Ethereum will have too soon find solutions to its problems if it has to regain the second spot or the speed at which XRP is progressing it will soon run away to a price where it will become super difficult Ethereum to catch it. For now its all joys to XRP holders and sadness for Ethereum holders.
Will XRP rise further and challenge the Bitcoin in near future? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.