Ripple’s token XRP has overtaken Bitcoin Cash to become the second largest cryptocurrency regarding market capitalization. It now has a market capitalization of $101 billion according to CoinMarketCap.
The main reason for Ripple surge in value is that the whole crypto market is experiencing a massive correction. Several cryptocurrencies have declined in value recently. For instance, Bitcoin, Ethereum, Bitcoin cash, and Litecoin have seen a decline of about 6.1, 3.1, 6.5, 6.8 percent. In comparison, Ripple had surged by 11 percent in ten days as of yesterday.
Ripple has increased from a market cap of $29.77 billion on December 14 when it rose to the third position after surpassing Bitcoin Cash. In fact, it had risen by 202 percent since December 9 before reaching that area.
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Another reason for Ripple’s surge in value is the new consortium between SBI Holdings and subsidiary SBI Ripple Asia. Also, several Japanese credit card companies utilizing blockchain technology. In fact, the price rose to as high as $1.30 on Wednesday after the announcement.
Brad Gralinghouse, Ripple CEO on CNBC’s Squawk Alley said,
“We are going to invest in the ecosystem to both help accelerate the adoption of Ripple’s technology. One of the things we all have to remember is the value of a token over the long term is going to be driven by its utility. There’s no question there’s a lot of hype in this system”.
About 100 financial institutions are now using Ripple Network to process transactions with lower fees or costs. Moreover, banks like SEB use Ripple to settle large transactions for high profile clients.
In October, Ripple unveiled France’s Credit Agricole and Brazil’s Bexs Banco, and Uruguay’s dLocal has partnered with the company to implement Ripple’s blockchain technologies.
“SEB, the Swedish bank had used Ripple’s system to transfer $180m between Sweden and the U.S. in recent months to help manage the cash balances of one of the bank’s large corporate customers”.
Ripple facilitates speedy cross-border transactions on the blockchain although most of the deals are facilitated on Swift. In comparison, Swift takes ten days to send money internationally and has high fees.