Ripple Market Capitalization Soars, Surges Past Ethereum

Ripple Market Capitalization Soars, Surges Past Ethereum

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Ripple tokens have hit a massive upswing in market capitalization over the last day, surging past Ethereum and nipping at bitcoin’s heels.

Also Read: Homeland Security’s U.S. Citizenship and Immigration Considers Bitcoin

At end of day May 14, Ripple’s market capitalization was at about $8,345,000,000. Ripple continued surging well into the next day at about $11,500,000,000, continuing to climb. This has occurred in an oscillating fashion over the last few weeks, as Ethereum and the blockchain transfer token duke it out for supremacy.

Ripple Market Capitalization Soars, Surges Past Ethereum

Several news sites and other sources suggest this upswing in market capitalization was spurred by recent partnerships in the ripple network. These partnerships include large banking conglomerates and other banking organizations opting to work with or adopt the Ripple network.

An April 26 Ripple press announcement said,

Ripple is proud to announce the addition of 10 new customers to our growing global network. These financial institutions include MUFG, BBVA, SEB, Akbank, Axis Bank, YES BANK, SBI Remit, Cambridge Global Payments, Star One Credit Union and eZforex.com, representing some of the world’s largest banks, innovative smaller banks, and payment service providers (PSPs).

Differences Between Ripple tokens and Bitcoin: Ripple is a “Bank Coin”

Even though Ripple is gaining ground on market capitalization, there are distinctions between Ripple tokens and currencies like bitcoin and Ethereum. For instance, Ripple has enjoyed its market capitalization skyrocket as a result of gaining the aforesaid partnerships.

This happened because Ripple is a “bank coin.”Ripple Market Capitalization Soars, Surges Past Ethereum Several commentators pointed out ripple is not a decentralized cryptocurrency. It is a centralized bank-to-bank transfer coin. Ripple’s own commentary from their labs suggested the same when they mentioned being able to use a global freeze feature.

“The freeze protocol extension gives gateways the ability to 1) globally freeze all their issued funds, or 2) freeze funds issued to a particular user. Frozen funds may only be sent back to the gateway who issued them.”

This ability to freeze funds means that Ripple is not a decentralized blockchain protocol, but instead a distributed database that maintains control of the network from a central hub. This is a feature that would be impossible to execute if the coin was founded on decentralized algorithms.

This comes to no surprise to many, though, because this fact is not a hidden agenda. Ripple’s website explained the purpose of their technology: Its purpose is to be an inter-bank transfer protocol to smooth out the financial interactions between banks.

Conclusion: Ripple’s Market Position

Ripple Market Capitalization Soars, Surges Past Ethereum
Ripple Logo

In this regard, Ripple’s market cap has increased as a result of their partnerships. These alliances caused the market capitalization to swell beyond Ethereum, even though Ripple is not in the same category of coin.

It happened as a result of their positioning in the market. It happened because of a business alliance. By definition and design, Ripple is not meant to be a cryptocurrency. It is a “database coin” that is controlled via centralization and economic engineers.

Will Ripple’s token continue to grow on into the future? Can it maintain the second position in terms of market capitalization? Let us know in the comments below. 


Images courtesy of Shutterstock and Ripple.com


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  • Thanks for the enlightenment! But, it sure sounds like a cheap copy, something like: Ripple the fortified wine produced by E & J Gallo Winery the Low end fortified wine that was popular in the United States, particularly in the 1970s. Possessing a relatively low 11% ABV, it was originally marketed to “casual” drinkers. Due to its low price, it had a reputation as a drink for alcoholics and the destitute. Are there ways to mine Ripple?

    • Mary

      Ripple was invented in 2004. Long before Bitcoin. So no, Ripple is not a copy, and certainly not cheap.

      • mez

        HAHAHAHAAHAHAAHAHAHAHAHA your so funny. your even mixing up ripple with swift

      • William Wanklyn

        Ripple supply can be manipulated and anyone account frozen, so no thanks.

    • Marcello

      If the banks use ripple it is impossible that is better than bitcoin.

  • earonesty

    Ripple will always be more efficient than any decentralized coin. It will garner partnerships with banks and governments in ways bitcoin never can. Bitcoin is libertarian. Ethereum is communist. Ripple is everything else. It will become the largest market cap coin very quickly.

    • Marcello

      Full of fiat bank money, another fiat coin, it will never be better than Bitcoin, inverstors will suffer so much pain as .com bubble in early 2000, you are advised!!!

      • Mary

        Ripple is already a lot better technology than Bitcoin.

        • mez

          share some proof mary….

          • Tamal Dutt

            i do not understand for bitcoin confirmation if someone charges more money, how and who control this and how everyone say it is decentralized ?

        • Dr. Bubó

          Technology is not everything. You clearly don’t understand the investors psychology.

        • Marcello

          Ahahah 🤣

      • Khurram Javed

        Agree. What a ripple bubble. If ripple’s prices goes up too much, that will make the transfers between banks expensive defeating the purpose of cheap transfers. Goes to show deep-pocket investors can be wealthy and idiots (i.e. Trump is idiot and wealthy).

      • Michelle Yun

        No thanks to any banker’s own centralized coin.

      • Joe Shmo

        What exactly are you thinking is going to happen to cause investors to lose money?

        • Marcello

          The price of ripple units is absurd, half of bitcoin cap without the huge real economic size that is behind Bitcoin. We had Bitcoin bubbles (for bubble I mean a very fast increase of the price as 500 per cent in two months ) in the past and after we had strong and long corrections, it is natural that it will happen to ripple too or do you think that banks will put in it one billon per month? And for how long?

    • mez

      fake money is always easy 😉

  • Mary

    Ripple is superior to Bitcoin in just about all aspects and may even become more decentralized than BTC within a couple of years (google ripples plan). Particularly when you keep in mind that Bitcoin is controlled by two hardware companies and 5 mining pools and that a fraction of 1% of holders own more than 99% of BTC in existence.

    • mez

      hahahaha you keep telling yourself that, good luck. Ripple is gonna fail hard and then you’ll be very sorry

      • Khurram Javed

        Agreed. It’s drop will be nasty.

    • Marcello

      Half of the token are to be released for circulation, while the company plans to retain the other half. Do you understand that? How can you compare this to the invention of Satoshi Nakamoto? It is not only about technology, it is about the rules of the game, network effect, number and quality of developers, hashing power, community, infrast and so on… You can not compare gold with copper.

      • Khurram Javed

        Agree. Gold and copper analogy is perfect. Copper actually has to be cheap for people to use. Can’t build buildings with copper at the price of gold.

  • Erik

    If you can change the word, blockchain with the word Database your not dealing with a crypto currency.
    Looking at the current marketcap of XRP and the posts here plenty of that going.

    And obviously a database is superior to a blockchain and that is why, XRP is lot faster than all other crypto-currency. but bitcoin was not created to be the fast or the best, but to give people the choose to become the boss over their own money.

    XRP not only gives control back to banks, it also making them earn because we invest in their product of choice.

    Honestly people should be ashamed of themselves, and should never be allowed to banker bash again if support XRP.

    • Khurram Javed

      I tried to transfer ripple between wallets to test this visa-like speed of network and took me 45 minutes. Where’s the speed in that? You’re right I wouldn’t bash bankers. I think it’s misguided VCs and uninformed investors pouring in.

  • Tamal Dutt

    i do not understand for bitcoin confirmation, if someone(who) charges more
    money, how and who control this and how everyone say it is decentralized
    ?

    • It is time a miner explain this. There are only so many entities like miners, exchanges, and blockchain nodes verifying transactions. Most weigh a blockchain by difficulty not evaluation, but some mining pools do take the time to evaluate the block number and its potential value or reward, like an auction. Some exchanges and wallets allow you to choose your transaction attraction to this evaluation by raising your fee to time or fee to data size and few offer a fee to a measure of current transaction traffic at the time of your transaction. I use “bitcoinfees 21” to examine where I want to be in line of time to wait for confirmation. The size and difficulty of the block is worth the fee related if the transaction is timely. I agree that current popularity is raising this fee to double and triple, The network of transaction verification will need a great advancement in hardware and protocol and involvement if it is to meet current demands and expectation of price and time. I have a full node and several wallets, as well as 100Th mining in one pool and growing. I have often envisioned every single virtual connected device participating in mining, a background united verification front.

  • Well, I can see, now. Ripple ownership is not anonymous. I get it, the only way to own a Ripple, is to give something far more sacred, your Identity. Huh…how is that better than a publicly valued, anonymous, and private?