Ripple (XRP) proves its potential just as 2017 comes to end. The lesser known cryptocurrency initially started to draw attention as its price grew in December. The coin has not slowed down its progress since then. It has even surpassed ethereum to claim the place of second largest digital currency by market capitalization.
While all eyes were on bitcoin, it seems ripple (XRP) was preparing to end 2017 on a high note. Having started the year at a mere $0.64, ripple’s XRP is currently trading at an impressive average of $2.20. Bitcoin, the largest cryptocurrency, grew by 1,400% this year. In contrast, ripple has risen by over a massive 34,700%.
Ripple ended 2016 costing less than $0.01 and touched the $1.00 mark just recently. Ripple (XRP) also does not share bitcoin’s notorious high-rate of volatility. In the light of these factors, investors are currently pouring their money into the digital currency pushing its value even further up. Cryptocurrency experts have also deemed ripple a far safer investment than bitcoin.
Why the sudden growth?
The reason for the sudden growth of a coin that went unnoticed for most of the year is unknown. A number of factors could have contributed to its progress. These include ripple’s recent partnerships with prominent financial institutions, such as American Express. Moreover, news of Japan and South Korea testing it for cross-border payments could also have pushed the price to new heights.
While other cryptocurrencies are mostly decentralized, ripple (XRP) is considered to be the opposite. Anyone can buy bitcoin or other similar currencies on an exchange. Ripple’s XRP is different, as it is created and backed by Ripple Labs, a global money transaction business.
RippleNet includes more than 100 companies
Ripple claims that over 100 financial institutions use its payment network. This is due to its remarkably small settlement time of only four seconds. In contrast, bitcoin's settlement time is over an hour, while ethereum’s is over a minute. The company’s network is also said to be working on lowering transaction time and costs.
Bitcoin was on the rise for most of this year while other cryptocurrencies remained somewhat out of the limelight. However, the price of bitcoin has been decreasing since its last peak of almost $20,000. Experts are already calling 2018 "The Year of AltCoins." With ripple’s upsurge, this might turn out to be true.