Recent reports have it that Ripple, one of the top 6 virtual currencies in the world, saw a shock 30% plunge in market cap today with other members of the top 6 and world-renowned digital currency Bitcoin also suffering a similar fate. This report comes after China, a country that has been a proponent of virtual tokens and has conducted the most extensive mining operations for digital currencies around the world, apparently initiated an “orderly exit” (as it puts) from Bitcoin mining in the early hours of today.
The orderly exit as the Chinese authorities call it has inevitably prompted a sharp drop in cryptocurrency prices. Top digital coins like Ripple and Bitcoin have been affected with Ethereum been the only outlier among the top 6 virtual currencies around the globe. While Bitcoin’s prices have dropped the opposite is the case for Ether. Ethereum’s prices beat the downward trend and moved up today after record a 2.4% and are trading at 1,100.50 USD. Ethereum’s return in recent days has seen the digital currency retake its position behind Bitcoin as second most considerable virtual money out there by market capitalization.
Note that while Ripple suffered the most significant losses today, it’s competition Bitcoin dropped by 10.6% and Litecoin dropped by 8%. The fall in prices for Bitcoin and Ripple comes as a surprise because 2017 had been an impressive outing for Ripple in particular after the virtual token soared in prices by 35,000%. Contrary to other digital currencies, Ripple has gone on to work with global institutions, which is giving it a new sense of legitimacy in the eyes of users.
But digital currency traders feel centralization is the root of why Ripple is declining. According to the CEO of digital asset management ShapeShift, Erikk Voorhees, The real reason why ripple is surging forward is indeed a bubble.