The digital currency market has witnessed one of the largest corrections in recent memory. Prices of virtually every crypto, from bitcoin to ether to litecoin, fell nearly 50 percent. With signs of recovery now materializing, will it be Ripple leading the “big cap” coins forward?
Prices are nowhere near their previous highs, and threats of regulation from figures like France’s President Emmanuel Macron and Germany’s Chancellor Angela Merkle are still waiting in the wings. But bitcoin and its cousins are once again climbing upwards in the markets, though it’s Ripple that seems to be showing the most promise in recent days.
No doubt, XRP took a massive tumble during what many are calling “Red Tuesday,” dropping from its more than $3 USD high to less than $0.90 over a two-day period. At press time, however, the currency has risen nearly 65 percent – spiking to approximately $1.64 in what is turning out to be a “tortoise and the hare” race for cryptocurrency.
XRP is still $2 in the hole when compared to a few weeks ago, but the currency’s value are still several thousand percent higher than where it stood in 2016. Big-time competitors like bitcoin and ether, on the other hand, have been slower to recover. At the time of writing, bitcoin is trading for about $12,000, while ether stands at about $1,100 – $300 less than where it was in early January.
Chief trader at Ayondo Markets Jordan Hiscott feels that Ripple is stronger and more stable than bitcoin, and believes its stance as a faster and easier-to-use currency could bring it to the front of the “coin crowd.”
“At this moment, bitcoin is the most exposed cryptocurrency, largely down to its intrinsic value as having the highest market capitalization at $191 billion, and the fact that it is a victim of its own success,” he explains. “Currently, transaction times are slow and relatively expensive.”
Hiscott continued, noting:
“On the longevity basis, bitcoin cash and Ripple are the best in my view… Ripple is the electronic payment system that is already being used by many corporations and companies, and given the press attention it has received recently, I can only see it going from strength to strength.”
CEO of digital currency comparison site CryptoCompare.com Charles Hayter explains that traders’ fears following the massive drops have begun subsiding within the last 24 hours:
“Trade volumes were very noisy yesterday as the bulls and bears fought it out and some sort of calm has appeared on the markets after what has been a severe correction.”
Despite the good news, he also warned that financial authorities are likely to use the recent price drops as an excuse to further push regulation agendas:
“This market is now big, and governments are sensing revenue for the coffers, as well as a threat in some degrees. This will catalyze regulation where regimes who legislate several will balkanize themselves to the industry.”
It’s not all gravy in the Ripple community, as acclaimed The New York Times journalist Nathaniel Popper highlighted on Twitter yesterday that, while XRP has some pretty impressive touted partnerships, these collaborations are more words than actions for now.
And while that dynamic surely won’t be permanent, it is something to keep in mind as we watch Ripple’s performance in the weeks ahead.
Ripple calls its virtual currency, XRP, the 'global liquidity solution for payment providers and banks.' But when the Financial Times asked 16 banks linked to Ripple if they had used XRP, how many had? None. @MAmdorsky writes https://t.co/I337oNw0uv
— Nathaniel Popper (@nathanielpopper) January 18, 2018
Could XRP become the number one crypto by market cap? Or do they still have a lot more to prove? Post your comments below.
Images via Ripple, CoinMarketCap, YouTube