Similar to Bitcoin, Ripple has been seeing an astronomical rise in price over the past couple weeks. In fact, only a few days ago its price rose 70% in just 24 hours. Many traders are anticipating an announcement by the Ripple team which would ultimately lock up millions in XRP to instill confidence in the project.
Today the company announced its plans to place 55 billion XRP into a transparently managed escrow account– providing greater market transparency and certainty about current and future XRP supply.
Using its recently launched Escrow feature, Ripple will cryptographically lock up 55 billion XRP, which will be released for its use 1B at a time on a monthly basis. Any unused XRP will be placed back into the escrow queue at the end of the month. This adds another layer of stability to the market by regulating the supply and demand. By giving investors a predictable supply schedule, Ripple is removing any question or concern about large-scale sale of XRP that could drive prices down.
According to coinmarketcap, Ripple’s market cap is at a whopping $12 billion. That is more than 40% of Bitcoin’s market cap which is at $28.6 billion. However, keep in mind that compared to Bitcoin which has 16.3 million coins in circulation, Ripple has over 38 billion coins in circulation. So, even though a single Ripple costs 32 cents, the sheer amount of coins in circulation inflates the market cap to a massive number.
Ripple is different in the sense that it appeals to more traditional financial institutions, its protocol has been adopted by a variety of banks in different countries. Unlike Bitcoin, Ripple doesn’t use the traditional proof of work algorithm, instead it uses an iterative consensus process, which is unique to Ripple.
Furthermore, Ripple acts as a decentralized currency exchange, so if someone wants to sell their XRP, while they can use traditional means like an exchange, they can also use the Ripple network to exchange the currency. Ripple is also non mineable, and the coins are distributed by a third party. This creates somewhat of a misconception that Ripple is a centralized permissioned ledger, however that is not true. While Ripple has its differences from Bitcoin, the ledger is fully public and can be used by anybody.
Both Bitcoin and Ripple have their places in the cryptocurrency ecosystem, but it seems that the appeal that Ripple has towards traditional financial institutions is a big advantage it has over Bitcoin. Whether this recent price rise is a bubble in the making is up for debate, one thing is for certain though, Ripple is not going away anytime soon, especially after the team locks up millions to instill confidence for investors and their clients.
Dislaimer: This is not trading advice, this article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.
This sentence is a little misleading isn’t it – “Ripple has over 38 billion coins in circulation. So, even though a single Ripple costs 32 cents, the sheer amount of coins in circulation inflates the market cap to a massive number”.
If someone buys 1 bitcoin for $1000, and also buys 1000 on Ripple, but they receive 400 XRP. The amount of money actually spent is exactly the same, so how is Ripples marketcap inflated?
Agreed, they don’t understand how cryptos work. It doesn’t really matter how many are in circulation. It’s how much is invested into the currency which gives it value
watch when xrp and str pump and dumps the price of btc drops a substantial amount only to instantly recover due to japanese inputs.Ripple has waited till the market was mature and taking 3 nights ago as an example ,walked out the door converting nearly one sixth the btc in circulation to fiat.. if the inputs were not replacing the outputs they would destroy btc market cap…
to make matters worse we have a major exchange working in tandem.I work in an aust bank and they are laughing out the sides of their faces.My boss says they are picking btcoins like fruit.
Now they produce 50 billion more.////////
XRPs 20% “correction” Tuesday night was not organic, I was there. The largest alt-coin trading platform, Poloniex, is the single reason why XRP isn’t sitting at $.50 right now. Their site has a fatal flaw where a DDoS attack or extreme user volume can bring their trading platform to a screeching halt at any time. This has happened 4x now and every time, XRP has been at an all-time high and on a bull run. Tuesday night when XRP was at .00024/Bitcoin, like clockwork, Poloniex basically froze up and all users except for a handful were unable to buy, sell or even transfer funds out of the exchange. FOR TEN HOURS! The few that could actually get a trade to go through pannic sold for good reason and all the rest of us could do is stare at the screen and watch the big red line going down the screen. By the time I could sell or transfer out, XRP was down 20%. The maddening part is that Poloniex acts like this problem doesn’t even exist. There’s no warning on their sight, no statement while or after it happens, nothing. Anybody who complains about it in chat are banned from chat. They just cover it up. Poloniex is either unwilling or unable to fix their issues and are still up and running right now like everything’s fine. If this was Scottrade, they’d be shut down and have a multi-million lawsuit on their hands. I contacted the FBI yesterday and may contact the SEC next. Poloniex need to either fix their problems or be shut down. If there’s any purposeful manipulation of the markets on Poloniex’s end then they should be investigated and prossicuted. Their vunerability to attack and manipulation are dangerous to crypto-markets and to investors. I now hold all my alt-coins in online and offline wallets for storage and will never use Poloniex again. I suggest anyone who was affected by Tuesday night’s freeze, the 3 prior or are just concerned about stability in the crypro-markets, contact the FBI and or the SEC and voice your concern.
Like!! I blog quite often and I genuinely thank you for your information. The article has truly peaked my interest.
I learn something new and challenging on blogs I stumbleupon everyday.
A big thank you for your article.
Thanks for fantastic info I was looking for this info for my mission.
Thanks so much for the blog post.
My website is on a remote server, I have copied all the files from their remote host server. How do I now configure MAMP to see this as a local copy of wordpress so I can edit it and try out different themes. . Please help. I am pulling my hair out!.
cheapest ed pills http://canadaedwp.com erectile dysfunction pills
I’m interested in making my own music blog and I’m constantly looking through many music blogs throughout the day finding new music first before other people that I know. But how exactly do those blogs find that music first? Can I really start by just posting the music I find on other blogs?.