With over a hundred digital coins in the crypto world now, analysts, as well as investors who are out to make something off cryptocurrencies, takes into consideration many factors before throwing their money on them.
The current growth of this new technology in money is quite astonishing and even with that, there is still room for improvement as cryptocurrencies are expected to continue growing in many years to come.
This has pulled many people into the game and before using their resources on this new found technology, they tend to be thorough with everything there is to know about their investment.
The market capitalization of cryptocurrencies has been a major factor for players in the cryptocurrency world at the expense of other obvious factors.
Reports from crypto analysts last week suggests that Ripple, a relatively smaller digital coin as compared to bitcoin is actually giving the biggest cryptocurrency now a run for its money. It is reported that bitcoin will drop to the second biggest coin should Ripple hit $7. In the simplest form of explanation possible, Ripple getting bigger than Bitcoin means Ripple will have to rise or grow to achieve a market worth of $6.57 and this is according to a report from CNBC.
For this to happen, Ripple would have to attain a rise of 164% which seems likely possible since it achieved almost 36,000% just last year. This would mean that the market capitalization of Ripple will become bigger than that of Bitcoin. Bitcoin has the largest cryptocurrency market cap and has done very well for itself since the beginning of last year. Its market capitalization is around $247 billion which makes up almost 41% of the total market cap of the crypto world.
With Bitcoin already established, many investors are turning their attention to available alternatives but would wish for a one that will soon yield results. Ripple happens to be one of the prominent coins battling it out to make a name for itself since breaking into the crypto world.
Market Capitalization in the world of cryptocurrencies, in other words, is a measure of the relative size of a cryptocurrency. It is the value of the whole digital currency in circulation. Market Capitalization is calculated by multiplying the price per unit by the circulating supply of a virtual coin or currency.
The sum of the market capitalization of all the cryptocurrencies in the system recently dropped from $800 billion to $709 billion. This can be attributed to the current situation of the crypto world were there has been a dip in many of the currencies off late with the exception of Ethereum.
Taking a closer look at Ripple
Ripple, officially known as XRP, has been living in the shadows of Bitcoin for some time now but is finally doing well since it was released in the system in 2012.
Many people do not see Ripple as a “real cryptocurrency”, given its unique state. It wasn’t really designed to be a coin as the other cryptocurrencies but rather was to enable secure and instant financial transactions of any size globally without any chargebacks.
It is not mined and therefore has no miners or whatsoever. Its transactions are rather mechanized through a centralized blockchain to allow more reliable and faster transactions.
Ripple is not subjected to any limitations and can, therefore, be printed on-demand. This makes it more reliable in money exchange, payments, and other activities.
The virtual coin rose to 55.9% last week and achieved an all-time high of $2.23, and in the process, outstripped Ethereum as the second largest cryptocurrency in terms of market capitalization. It had a market cap of $86.3 billion, beating that of Ethereum which was $73 billion.
Its digital coins currently in circulation is 38,739,144,847, with a total supply of 99,993,093,880 XRP, and a maximum supply of 100,000,000,000 XRP. According to reports, its market cap was around $96.46 billion on the 8th of this month. More than 34,700% growth has been achieved by the coin so far this year. Ripple was trading at less than 1 cent in 2016 but was trading at $2.25 on Friday.
The virtual coin is now back on its feet after suffering a dip in value with its price falling nearly 5% and this is after Ripple and MoneyGram broke the news of a new partnership which seeks to allow MoneyGram test out using the XRP token.