XRP (XRP) continued to push ahead of Ethereum over the course of the weekend, and has extended its market cap to $20.4 billion – 12% higher than Ethereum.
Since the trough of the recent dip on Thursday, November 15th, the XRP price has undergone 19.8% gains. Ethereum has been well and truly ‘flipped’ for the time being, but now talk is turning to the prospect of XRP enacting another version of the flippening with Bitcoin.
Can XRP ‘Flip’ Bitcoin?
The possibility of XRP hitting 400% growth and overtaking Bitcoin’s market cap of $97 billion does seem somewhat unlikely. That would require XRP to hit a coin price of $2.50, while BTC would have to remain anchored to its current valuation.
Such a price isn’t exactly in the realm of fantasy for XRP; it last reached that valuation on January 8th, 2018, while the ATH to date is $3.84, reached on January 4th. Of course, the entire market was in a different place at that point, and the $9 billion daily trade volume required to reach that price is more than the entire crypto market amounted during quiet periods in October.
Another, more realistic way of looking at the XRP-BTC dynamic is through the prism of a decoupling – where XRP’s fate is no longer tied to that of Bitcoin.
There’s enough recent evidence to lend some credence to this idea, particularly the way XRP soared through Q3 while Bitcoin remained in stasis. Also of note is the fact that much of XRP’s movements are regularly fuelled by currencies other than Bitcoin, particularly Japanese yen (JPY) and Korean won (KRW), which make up the first and fourth most traded pairs respectively even today.
Perhaps a more crucial way XRP is differentiating itself from Bitcoin is the fact that XRP currently appears to be wearing an institution-friendly suit; while BTC retains the rugged, questionable attire of its dangerous, cryptographic conception.
Say what you will about the true merit of the underlying currency – and there’s a lot to say – but XRP is currently threatening to become the first cryptocurrency to transcend the space, and become the first mainstream face of crypto.
Whether ‘the artist formerly known as Ripple’ is the best face for that job is up for debate – a debate which often struggles to take place between outright XRP haters, and the unfailingly loyal XRP fanatics.
The coin price fluctuated all day on Sunday, climbing 6.5% at one point, hitting $0.522123 before slipping to the $0.49 range and then levelling out at $0.50.
The previous three days saw a 19.8% rise in the coin’s valuation, and it now sits on second place in market cap rankings, 12% ahead of Ethereum.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.