In that past month while Ethereum, the second largest cryptocurrency by market cap, continued to fall, Ripple rallied aggressively. In a 24 hour period, Ripple rallied 80% and for the week last week, it tripled in value as investors seem to be rotating. This is most interesting as the lock-step trading patterns that we have seen in the past year in all the major cryptocurrencies is now starting to break down – these currencies are now becoming independent and trading accordingly. We see a pattern in which the group think of crypto investors is changing quickly.
Ripple is now seeing its market capitalization at $26.8 billion, surpassing Ethereum as the second largest cryptocurrency on the market. This is confirmed from several sources.
Now we at Classiarius have been looking for a bottoming out of the market in general. Our views changed in late August and early September for several reasons. One being that negative news was overly priced in – evidenced by additional negative news not having downside impact, allowing digital currencies to find a base. We focused on Bitcoin as it is the benchmark but others seemed to follow the same pattern. But separately, Ethereum was having its own problems and as these problems surfaced, investors started to look for alternatives. XRP became a target as a result.
Ripple is now being called a “bridge” between currencies. Some experts are saying that it allows payment providers and banks to process faster cross-border transactions. This clearly seems to be the case. And note that Ripple ties together financial institutions, and clearly does not threaten them or challenge their positions. They only get stronger by using Ripple.
Ripple is now used by 61 Japanese banks and worldwide, about 120 banks. while it is being used to transfer payments for Western Union and MoneyGram as well as upstarts like MercuryFX and Cuallix. The key question is just how much this coin will be used in the future in everyday banking transfers?