Ripple’s XRP has now taken over Ethereum’s ETH by becoming the second largest cryptocurrency in the market. XRP’s value had risen by 21% in 24hrs. And is now trading at $0.56 with a market capitalization of $22.5 billion, overtaking Ethereum’s Market capitalization of $22.07 billion.
The largest trading volume of XRP was recorded to be coming in from a Japanese exchange, where the figures were approximately $178.3 million. Other exchanges like Binance and Bithumb also showed large trading volume.
XRP has had some highs and lows this month, the cryptocurrency was moving sideways, however, it went bullish this week resulting in an 18.1% increase in a week. This bullish run was started by a speculation of the adoption of xRapid and xCurrent by several financial institutions like American Express, Japanese financial institution SBI, MoneyGram and many more.
As previously stated, XRP has the ability to cross $10 threshold when xRapid will be widely used. Ripple has also shown over a 480% increase in quarter over quarter in institutional direct sales.
XRP will be a catalyst for the rise in the price of XRP as Picolo’s research points out:
“It is important to note that XRP’s value is derived when clients use XRP as a bridge currency on Ripple’s xRapid platform, and not directly from its other products. We derive its fundamental value from two aspects:
- Value of cost savings utilizing XRP on xRapid, not including savings derived from xCurrent
- Value of locked-up liquidity in NOSTRO accounts that could potentially flow into XRP (estimated 1% of total locked-up liquidity)
Our analysts derived an intrinsic valuation of $1.75 per XRP token. The estimates used are conservative as it does not include tokens burnt, the growth of Ripple’s market share, value attributed for error reduction and market share of other non-bank financial institutions.”
The company has done an in detail research citing that they’ll look into several factors which will determine XRP’s potential.