Ripple Is the New “Hot” Cryptocurrency

Ripple is the main cryptocurrency to watch out for and pretty much can “steal the show from other altcoins”, analysts say.

by Viko
31 January • 3.5 min
In Analysis

The hottest challenger in the one-horse race dominated by Bitcoin is called Ripple, with its XRP token having soared to a market value of $116 billion at the beginning of January from just $200 million in March 2017. Thus, it climbed to the second spot by market capitalisation in the crypto world, surpassing Ethereum.

Ripple’s success lies in the cheap and massive quantities of transactions, which are adopted by major banks across the world. The company’s technology offers almost instant international payments, which are processed in a few seconds. Traditional methods of payment from one party to another (like Swift) are extremely slow and may take days, and also are pretty expensive.

speed lights

Another major advantage of Ripple is the ability to support a huge number of transactions – 2500 per second, compared to the meagre 5 for Bitcoin.

Proof of the flexible and cutting-edge nature of Ripple comes from major credit card companies, including American Express, which use the RippleNet system. A huge bonus is that the new system features full compatibility with the traditional banking system, so no time for adjustment is required.

At the same time, banks and other customers of the RippleNet system are not required to use the XRP cryptocurrency to conduct transactions, so these are two entities under one roof, so to say.

watch with ripple logo

Rumours that XRP would be added to the Coinbase platform that allows the trade of cryptocurrencies for real cash boosted its price dramatically in the last few days of December and the beginning of January. But the San Francisco-based digital currency exchange dismissed the reports and the XRP price plummeted by about a third, showing the huge risk investors have to deal with in the highly speculative cryptocurrency market.

Coinbase, one of the most popular digital currency exchanges with more than 10 million users now offers four tokens - Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

The creators of Ripple Labs, however, can rely on the fact that when or if the crypto bubble bursts, they have another well-developed business to offer.