- BTC, ETH, BCH, LTC continues to struggle after mini crash 22 December, 2017.
- Ripple (XRP) on the rise despite other cryptocurrency shortfalls.
Ripple: Rises From The Ashes
Ripple, a San Francisco based start-up, has quietly risen among the ranks of the cryptocurrency world becoming the 3rd largest with a market cap of $58.9 billion. As other currencies become more and more antiquated, Ripple’s selling point is that it has 4 second transaction speeds. Ethereum and bitcoin lag behind at 2 minutes and over an hour respectively. It is also one of the most scalable currencies on the market. Ripple states that it currently executes 1,500 transactions/second, but can match the throughput of Visa.
Banks Beginning to Adopt Ripple
Ripple’s biggest potential lies in its ability to settle liquidity needs between banks. Its “utility” is where it stands out amongst the crowd of other cryptocurrencies. Ripple’s recent gains can be attributed to SBI Holdings and its subsidiary SBI Ripple Asia, a financial services company based out of Tokyo. The company recently announced the formation of a conglomerate with some Japanese credit card companies. Though the extent of Ripple’s involvement remains unclear, the conglomerate plans to utilize the blockchain technology.
This is a major leap forward because banks are beginning to see its utility which in turn will drive its value up. Earlier this month, Ripple’s blockchain technology was being tested for cross-border payments between South Korean and Japanese banks. American Express and Santander even stated they would be using Ripple’s technology for cross-border payments between the United States and the United Kingdom. Stateside, over one hundred financial institutions are utilizing their blockchain technology. The banking sector’s confidence in Ripple’s system has seen it grow 20,000% since 2016, outperforming bitcoin and and ethereum at 1,500% and 9,200% respectively.