Ripple Coin Poised to Take Second Place on CoinMarketCap
- Ripple Coin (XRP) briefly replaced Ethereum as the second largest cryptocurrency by market cap on November 6th, 2018
- Ethereum scaling concerns and renewed mainstream financial institution interest in Ripple, have resulted in XRP Coin and ETH vying for place as the worlds second largest cryptocurrency
- Ripple Coin looks set to defeat Ethereum as the world’s second-biggest digital currency, possibly in a matter of days
Will XRP Coin Force ETH into Third Place on CoinMarketCap?
Momentarily on November 6th, Ripple Coin usurped Ethereum’s second place on CoinMarketCap. This came due to rising XRP prices and the total circulating supply of XRP, giving Ripple Coin a total value of $22.5 billion. By comparison, ETH’s market cap lagged almost $400 million behind at just $22.07 billion.
Why the Sudden XRP Price Boom?
XRP Coin is few people’s favorite cryptocurrency. The Ripple blockchain is, and will always be centralized. This is necessary so that XRP funds can (potentially) be frozen pending the outcome of law enforcement investigations. Of course, this makes Ripple Coin the complete antithesis to cryptocurrency. However, where Bitcoin enthusiasts might loath XRP, banks and governments are in love with the currency.
UAE Plans for 50% Distributed Ledger Adoption by 2020
Governments in the Middle East are particularly fond of Ripple Coin. Banks in Saudi Arabia, Kuwait, Bahrain, Oman, and the United Arab Emirates, are already using Ripple Labs blockchain technology to settle international monetary transfers. Because of their success in doing so, the UEA has stated that by 2020, 50% of all government transactions will be settled using Ripple Labs distributed ledger technology.
Conversely, Ethereum and even Bitcoin, are still struggling to scale to meet the needs of mainstream consumer markets.
Ripple Labs Corporate Charm Offensive
As well as Middle Eastern governments, big corporations and payment processors are also being wooed by Ripple Coin. At present, Barclays, Techstars, Mahindra Finance, and the MasterCard Foundation, are all backers of a new XRP-powered xRapid payment system called ‘SendFriend.’
Focused predominantly on the Philippines, SendFriend will soon start using Ripple Coin technology, to facilitate near instant payments between U.S. residents in the Philippines and friends and family back home.
SendFriend will also allow overseas Filipino workers (predominantly based in the Middle East and Singapore) to send earnings home quickly, minus usual transaction costs and exchange fees.
Will the Ripple XRP Price Continue to Rise?
Announcements of new partnerships and inroads into the Middle East, are music to the ears of institutional cryptocurrency investors. As, for that matter, is news that Ripple hopes to process 10% of all SWIFT based global transactions eventually. Ripple Coin may, therefore, be about to experience a new bull run of its own. More importantly, this could happen without any help from Bitcoin and could see XRP usurp Ethereum’s market cap position permanently.