Many of you may know that day before yesterday Ripple XRP suddenly shooted upto $3. It beat Ethereum and became the Second largest cryptocurrency used worldwide.
It has shown 49,500% growth in last 12 months.
The digital coin jumped 29 percent to an all-time high of $3.20 in afternoon trading, according to CoinMarketCap. Ripple, or XRP, now has a market capitalization of $122.7 billion and remains solidly in second place to bitcoin, which has a market value of about $251 billion, the website showed.
What is Ripple?
Unlike bitcoin, Ripple is a company that has created coin known as XRP that is aimed at enterprises.
Ripple markets itself as a cross-border payments solution for large financial institutions based on blockchain technology.
Ripple is trying to solve this problem via its technology. XRP can be used by enterprises to get instant liquidity needed in a high-value transaction, without having to pay fees.
XRP acts as a bridge between fiat currencies during a transaction. Ripple said transactions in XRP can be settled in four seconds, faster than any major cryptocurrency right now.
Main reasons to such a sudden growth maybe
- The very first and the main reason behind this increase in value is the growing ecosystem of Ripple.
- Ripple works with large enterprises and deals with large financial institutions, which has helped its digital coin, known as XRP, rally
- Some experts are also of the view that soaring prices of Bitcoin has also increased the confidence of investors in all the digital currencies. Bitcoin has touched an all time high value of more than $17000 and this has benefitted all the crypto currencies.
