Definitely the ripple ecosystem is definitely going to have to get a lot bigger to justify where XRP is right now," said Michael Graham, an analyst at Canaccord Genuity who has covered internet stocks since the late 1990s.
When asked which firms are using XRP, a Ripple spokesperson pointed only to an October announcement that said a bank called Cuallix is the first financial institution to use XRP, in this case for U.S.-Mexico transactions. No other firms were named.
However, Ripple said in a tweet Thursday that 3 of the top 5 global money transfer companies plan to use XRP in payment flows in 2018.
Digital currency ripple has blown past its cryptocurrency rivals largely because it is working with large institutions, which give it an aura of legitimacy and practicality.
However, cryptocurrency enthusiasts say that centralization is the exact opposite of what the technology of the digital currencies should be about.
"The reason ripple is surging so much is it's a bubble," said Erik Voorhees, CEO of digital asset exchange ShapeShift and a vocal advocate for bitcoin as a way to separate money and the state. "Testing crypto with banks doesn't make sense. The whole idea of crypto is you don't need banks..
Ripple founder now one of america richest