Ripple's Explosive Surge Accelerates; Market Cap Crosses Half Of Bitcoin's

Yesterday morning we highlighted that even as the broader cryptocurrency universe had gotten slammed following the latest threats out of South Korea, the price of the digital currency XRP, also called Ripple, exploded over the past week, and overtook Ethereum in market cap, making it the second biggest cryptocurrency in circulation after Bitcoin.

Then overnight the surge continued, with Ripple - which one week ago was trading around $1 - exploding even higher, rising as high as $2.80, or a $110 billion market cap and just over half that of Bitcoin's $212 billion, before easing slightly to $2.42 as of this moment, implying a market cap of roughly $95 billion, up 33% from $1.84 yesterday.

 

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As a result of the Ripple surge, the total market cap of the Cryptospace just shy of its all time high, at $560 billion as of this morning according to coinmarketcap...

 

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... entirely as a result of the spike in non-bitcoin cryptos, and specifically ripple.

 

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The move also means that Bitcoin's relative market cap share in the crypto universe has tumbled to just shy of its all time low, hitting 37.7% on Saturday morning, down from 85% at the start of the year.

 

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Needless to say, Ripple's ascent has been nothing short of spectacular, with the latest price of $2.40 putting XRP’s year-to-date gains at around 40,000%; dwarfing Bitcoin's 2017 return. XRP it began the year trading at less than a penny, with most of the gains coming in the last three weeks. On Dec. 11, XRP was trading at 25 cents. By comparison, bitcoin is up about 1,300%, and Ethereum is up 9,000%.

What prompted the exponential move in Ripple? One of the primary explanations focuses on the digital currency's possible acceptance: indeed, for XRP, the bulk of the gains came after signs that Ripple has shown more progress in signing up banks to its closed-loop network, called RippleNet.

As the WSJ reported, earlier this month, the currency got a boost after a consortium of Japanese banks signed up to test its network. The company has more than 100 banks, mostly outside the U.S., signed onto its platform. It has not disclosed amounts, but has said that some of those banks have been using it in a live environment to move money, rather than just testing it as a concept.

Another, just as likely explanation, is that the "low" single-dollar price of one XRP has attracted South Korea's "Bitcoin Zombies" who unable to determine any valuation, are simply buying because it appears "cheap" and has a lot of upward momentum.

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Unlike the rest of the decentralized crypto space, XRP is different from other digital currencies in that its development is being guided and controlled by a single, for-profit company, which has alienated many of the altcoin purists who believe that Ripple is a Trojan Horse attempt by commercial banks to dominate the space.

Ripple the company launched its currency in 2012, as part of a plan to use the concepts behind bitcoin to build a cross-border, interbank payments and settlement network.

As the WSJ adds, to Ripple CEO Brad Garlinghouse, the gains are a reflection of the fact that the company’s product is further along than competitors. “We have real customers, really in production using this,” he said, “not science experiments. Science experiments are not a business model.

He stressed, though, that he wasn’t viewing this as a competition between cryptocurrencies. “I want Ethereum to be successful,” he said in a WSJ interview Wednesday. “I want bitcoin to be successful. I don’t view this as us versus them.”

When Ripple launched the network in 2012, it created 99 billion XRP. About 38 billion have been distributed; the company holds with rest, with plans to release them publicly over time. This implies that the value of Ripple, the company, is roughly $150 billion, the same as GE and more than IBM, and 3M, as a result of the overnight surge. And yes, with the surge in the currency’s value, Ripple’s XRP is currently worth more than $100 billion, though the company would likely have a hard time monetizing that amount quickly.

Garlinghouse has also said it may use its XRP for acquisitions or as a resource to help build a wider ecosystem for its network.

 

Comments

Luc X. Ifer IH8OBAMA Dec 30, 2017 3:22 PM Permalink

Human stupidity is truly limitless, this just proves once more that the 99% are just farmed livestock, human cattle to the smart 1% aristocrats. Ripple is the TPTB's escape route now when threatened for the 1st time in history very seriously by the public decentralized blockchains and cryptos. So be it, if Ripple succeeds to take control of the new economy - Hasta La Vista freedom.

In reply to by IH8OBAMA

Pool Shark HillaryOdor Dec 30, 2017 11:35 AM Permalink

Sorry, buying anything with a value of ZERO for a price above zero is NOT a bargain.

There is an infinite supply of so-called crypto currencies, this article helps illustrate that:

Bitcon, Ripple, Monero, Ethereum, Litecoin, Yourcoin, Mycoin, Ourcoin, Theircoin, Etc.

Good luck if you 'own' any of them.

btw, Bitcoin is down over 15% this morning...

 

In reply to by HillaryOdor

FactDog oldschool Dec 30, 2017 1:11 PM Permalink

I have seen this before with BT from going from$60-$800.  At that time only 0.1-0.5% of investors looked into crypto or took the plunge.  It rose and then steadied.  

History will repeat.   Crypto has surged and will sink back to a lower level than we have today for 2-3 years.   

As it settles down, more technology will be developed and creative new blockchain applications will be invented. Music, banking, savings, trade will all be affected.  But today, we are in the flat phase again as  2-5% of the investment world has awoken to crypto as an asset class and they are digesting their actions.  My prediction is that in 2-3 years, we will see another 100 fold rise as that number increases to 20-30% of active investors wanting crypto exposure.  It will be a generational change.

 

There is still 6 Billion people chasing 21 Million BTC.  Eventually, we have $1.0M BTC.

In reply to by oldschool

FactDog oldschool Dec 30, 2017 1:11 PM Permalink

I have seen this before with BT from going from$60-$800.  At that time only 0.1-0.5% of investors looked into crypto or took the plunge.  It rose and then steadied.  

History will repeat.   Crypto has surged and will sink back to a lower level than we have today for 2-3 years.   

As it settles down, more technology will be developed and creative new blockchain applications will be invented. Music, banking, savings, trade will all be affected.  But today, we are in the flat phase again as  2-5% of the investment world has awoken to crypto as an asset class and they are digesting their actions.  My prediction is that in 2-3 years, we will see another 100 fold rise as that number increases to 20-30% of active investors wanting crypto exposure.  It will be a generational change.

 

There is still 6 Billion people chasing 21 Million BTC.  Eventually, we have $1.0M BTC.

In reply to by oldschool

tmosley Pool Shark Dec 30, 2017 1:15 PM Permalink

tbh, it is really annoying when total idiots like you are even partially right for reasons that are completely wrong.

But it is of little importance. The scam I have been talking about for months is accelerating, and moving into a different set of coins now (Ripple, Cardano, and Stellar). This too shall pass, the scam will fail, and real coins will continue to see real adoption, and will take over in the end, leaving retards like you clutching your worthless silver.

In reply to by Pool Shark

Herp and Derp tmosley Dec 30, 2017 3:02 PM Permalink

Honestly, I just saw a presentation a few days ago.  Admittedly, he was a sales guy but if half he said was true ripple is complete trash.  There will be a swift replacement, but it will be dictated by the central banks and it will happen very very soon.  They have been more than aware of current settlement tech and have been working on this for years.

In reply to by tmosley

Citxmech Pool Shark Dec 30, 2017 1:28 PM Permalink

But cryptos do have actual utility.  Not sure what any particular system offers in terms of long-term adoption, but this technology doesn't look to be going away and its potential probably won't begin to be realized for at least another ten years.

"Bubble" doesn't mean "avoid," it means be careful and prudent.  I know a woman who flys her own jet because she made good bets on the .com bubble.  If you bought Amazon after the crash, you'd be pretty pleased right now.  The volatility and amateur nature of many of the investors in this space means that a common Joe with some smarts can trade the herd and do very, very, well.  

 

In reply to by Pool Shark