September 26th, 2018
Ripple Overtakes Ethereum as Second Largest Digital Currency
Digital currency Ripple (XRP) recently overtook Ethereum and became the second-largest digital currency by market capitalization.
Bitcoin (BTC) currently has a market cap of $236 billion USD, Ripple $87 billion USD and Ethereum (ETH) $73 billion.CoinMarketCap reported a rise of 50% over 24 hours and the digital coin has grown by 700 percent since the beginning of December at a price of $0.25.
WHY THE RISE OF RIPPLE?
One theory on the current success of Ripple is the entry of new investors to the digital currency markets. These new investors are being driven by the global acceptance of digital currencies, the widespread adoption of blockchain technology, Wall Street acceptance, and increasing global regulation.
The earliest digital currency investors believed in the decentralized philosophies behind bitcoin and other early coins. Comparably, newer investors care more about finding safer investments as they join the digital currency bandwagon.
The volatile price of bitcoin thus leads investors to seek alternatives. Some believe bitcoin has peaked, others are looking for a cheap buy and a quick gain.
Investors who are looking behind the digital currency values and at the blockchain technology behind the currencies are choosing to invest money where future utilization and stability could lie.
Tech-savvy investors are looking to currencies which employ or support blockchains which show potential for global financial system implementation or wider technological use.
Ethereum, Ripple, and IOTA are three of a few which feature big name support and blockchain backbones which offer wider benefits for the finance and technology infrastructures.
RIPPLE AND RIPPLENET
RippleNet is the blockchain network behind Ripple coin. Investment in Ripple coin is funding its growth, brand, and development.
Ripple is developing RippleNet to provide “one frictionless experience to send money globally using the power of blockchain.”They propose a blockchain network which financial institutions can process customer payments “instantly, reliably and cost-effectively.”
Ripple has a powerful list of investors including CME Ventures, Accenture, Google, and Santander. Members also include many large banks and financial institutions.
RippleNet could connect payment providers, banks, corporations and digital asset exchanges. The third generation blockchain network aims to process transactions faster than SWIFT and handle the same volume as Visa.
The digital currency XRP offers to use a speed which currently outpaces Bitcoin and Ethereum. It takes seconds to process a Ripple (XRP) transaction, while it can take minutes for an Ethereum transaction and possibly hours for Bitcoin.
The National Crowdfunding Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada. For more information, please visit: ncfacanada.org