Ripple continues its upward trajectory, with the next aim of displacing Bitcoin in terms of market capitalization.
After breaching the one-dollar milestone on December 22, Ripple has continued its upward trajectory and is now the second largest cryptocurrency in terms of market capitalization with nearly $90 billion in market cap – a new record high for the digital currency.
Over the past 24 hours Ripple jumped 0.03%, and 102.52% over the last seven days, compared to Bitcoin, which dropped -0.89% and -7.04% over the same periods.
Given XRP’s massive circulating supply (over 37 billion coins), even a slight increase in price reflects greatly on its market cap, making it easy for it to displace most of the top 10 currencies, such as Ethereum, Bitcoin Cash and Litecoin.
Interestingly, XRP’s price had reached a peak of $0.42 in May 2017, following which it dropped to $0.20s and under, staying in that range for almost six months before resurrecting late December.
Ripple’s rise may have come as a surprise to some, given how it is a largely centralized currency with a massive supply of 100 billion. However, for its supporters, it was only a matter of time, since Ripple, the startup behind the network, has been actively pursuing partnerships with global banks and institutions, pitching Ripple as a highly scalable, fast and efficient method of settling global payments.
That being said, XRP’s massive surge is apparently a result of trading activity from Asia, with Bithumb’s XRP/KRW pair amounting for over 30% of the 24-hour trading volume.
Whether XRP will continue to rise, remains to be seen, and its ultimate fate will depend on whether banking institutions will adopt it as a settlement layer for their cross-border payments.
For now, as with most cryptocurrencies, XRP should be considered a speculative investment with the usual risks, particularly because a lot of investors are buying in hopes of a Coinbase listing, which can possibly push the price even higher.