The Ethereum price reaches a new historic high at $ 1,410, the market moves from ripple to ether

The Ethereum price reaches a new historic high at $ 1,410, the market moves from ripple to ether

Get trading recommendations and read the analysis on Hacked.com for only $ 39 a month

Ethereum (Ether) consolidated its position as the second most valuable cryptocurrency market surpassing Ripple (XRP) by a staggering $ 60 billion over a five-day period.

The ether benefits from the fall of Ripple

Since January 4, the market value of Ripple has increased from $ 148 billion to $ 73 billion, nearly double in one week. On the contrary, the Ethereum stock market valuation jumped from $ 85 billion to $ 135 billion, registering yet another 15% increase today, on January 10th.

The recent surge in Ethereum prices can largely be attributed to the liquidation of XRP, which was probably triggered by market concerns over the sudden surge in Ripple's stock market valuation. . Ripple's harsh criticism by analysts such as Ryan Selkis, a contractor-in-residence at ConsenSys, could also have led to a decline in confidence in Ripple.

On December 29, Selkis noted that the majority of Ripple's partner banks do not actually use the Ripple network to process billions of dollars on a regular basis. Given that the volume of Ripple's transactions and its network of banks can only be two factors that can justify its market capitalization, the market interest for Ripple has decreased in the short term.

Selkis wrote:

"According to a source from one of the largest banks concerning XRP:" I do not know any bank that a) uses it, or b) would touch it. in any way because it is controlled by an SV company and 20% of all existing XRP were taken by the founders.

The product that Ripple offers to banks is simply a point-to-point messaging tool with smart cryptography underneath to make sure the transactions are atomic. The liquidity model used is the same as correspondent banking. "

In response to the New York Times 'Selkis and Nathaniel Poppers' criticism that banks do not use the Ripple network to settle large volumes of transactions, Ripple CEO Brad Garlinghouse says firmly that Ripple's xRapid Platform for processing large-scale payments.

"In the last few months, I have spoken with banks and payment service providers as they plan to use xRapid (our XRP liquidity product) in a serious way. Here is a sample of what I heard:

1. We calculated costs on our side and found that it was 100% more efficient than what we are currently doing.
2. xRapid drivers have all gone perfectly.
3. This is much more efficient than our process today. We would like to go ahead with xRapid today.
4. This [XRP] is a much more efficient way of sending money across borders than what we usually use today.
5. There are many small and medium-sized banks that are hard hit by fees. They would jump at the opportunity to send money directly and bypass these fees. "

Yet, regardless of Garlinghouse's statement, Ripple's value dropped drastically over the past week and as a result, Ethereum benefited from XRP's changing interest in rest of the cryptocurrency market.

Ethereum's market capitalization may be justified

Ethereum remains one of the few blockchain networks to have a justified market valuation. Ethereum-based distributed applications such as CryptoKitties, 0x, EtherDelta, Status and OmiseGo have obtained a significant base of actual users who process hundreds of thousands of transactions daily.

In the short term, it is likely that the upward trend in Ether prices will continue, as decentralized applications on the network are working well.

Image from Shutterstock to photo

Follow us on Telegram.

Advertising

Original article and pictures take i0.wp.com site