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Ripple's XRP briefly surpassed Ethereum Ether over the weekend to become the second most valuable cryptocurrency in the world. The 7% increase in the value of XRP on Sunday morning raised its value to $ 24.6 billion, which is enough to surpass ethereum ether, whose market capitalization was $ 24.1 billion. at that time. The increase in prices of both crypto-currencies was part of a faster rise in cryptocurrency markets, valuing them at $ 225.5 billion.
Although XRP is lagging behind its market since it's listed on the cryptocurrency markets, the gap that separates them has largely been cleared this month. In fact, XRP surpassed the ether three times in September due to the rise in cryptocurrency market capitalizations.
At the time of writing this article, Ripple's XRP had a market capitalization of $ 23.2 billion and is trading at $ 0.58, up 2.03% from its price of $ 1.25 billion. At 24 hours, while Ethereum Ethereum had a market capitalization of 23.8 billion USD and changed control at 233.17 USD per dollar, unchanged. its price 24 hours ago. Given the narrow gap between the two cryptocurrencies, where should you invest?
A dramatic year for XRP
Ripple's XRP has had a dramatic year so far. It peaked at $ 3.36 and had a market capitalization of $ 130.3 billion in the first week of 2018, largely due to a sustained rebound in the cryptocurrency markets. But he fell into a downward spiral after an avalanche of criticism from experts and regulators who dropped his price in the following months.
Although Ripple has signed agreements with banks to test its technology for international transfers, critics have questioned the usefulness of its cryptocurrency in such transfers. Their criticisms focused on the fact that the XRP was neither essential nor necessary for making transfers. Most banks, although passionate about Ripple's technology, have been reluctant to incorporate the XRP into the mix. The uncertainty surrounding XRP's regulatory status also contributed to the downward pressure on its prices.
But the month of September caused a reversal of the situation of the XRP. Its price jumped 115% in the third week of the month after the company's xRapid product, which uses XRP to make bank transfers, went live in "about a month." Even news that the company's co-founder would sell its XRP stock in large quantities has failed to significantly curb its price hike. XRP's future price increase is dependent on the attractiveness of Ripple products and the clarity of its role in the Ripple ecosystem. (See also: Why did Ripple's XRP jump 190% last week?)
Astonishing fortunes of Ether
The increase in XRP corresponded to a drop in the fortune of the ether. While its valuation has declined considerably since the beginning of the year, the cryptocurrency of ethereum has avoided the perilous fall of its price as XRP. This is largely due to the positive press and enthusiasm generated by smart contracts, which allow a digital exchange of value between two parties to a transaction. Ether is the underlying cryptocurrency that feeds such deals, and the price hike is largely due to investors expecting it to gain ground and gain momentum as smart deals progress. proliferate in all sectors. Regulators' comments on its status further strengthened its status with investors.
Like XRP, the role of the ether in smart contracts has recently gone under a cloud. Critics argue that tokens, built on the ethereum blockchain, are sufficient to carry out transactions. The situation is further complicated by the large number of chips on Ethereum. Setting a chip to ether exchange rate in a dynamic environment where chips and ether values are constantly fluctuating relative to each other is another blow to crypto -currency of the ethereum. The problems of scale facing the Ethereum chain also worry investors. (See also: Can the ether value drop to zero?)
The Ether slide has accelerated lately due to such criticism. That said, the Ethereum blockchain is still popular among companies, who are experimenting to get smart deals. Many startups have already tossed tokens on their blockchain. Investors interested in the ether will have to follow its usefulness and growth within the smart contract ecosystem.
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