Litecoin and IOTA in the last 7 days had gained over Ripple XRP in terms of market capitalization. However, after the rally over the last 3 to 4 days, Ripple has risen in its market cap to $28 billion which is higher than the other 2 cryptocurrencies. The rally in Bitcoin has been rubbing off on the other cryptocurrencies as well.
Ripple XRP had been underperforming for quite a few months lately. For the last 5 months or so, it has been moving in the range of $.15 – $.25. Recently, it broke that range on the higher side and it now is trading around $ .75 after hitting a high of $ .89. This astronomical rise in Ripple cryptocurrency has ensured that it has regained the 3rd most valuable cryptocurrency spot after over ranking the others.
Moreover, the company behind Ripple is consistently signing up more and more banks in order to use its money transfer protocol which ensures that instantly, money can be transferred from one bank to another anywhere around the world. In order to use the protocol, most of the clients are using theRipple cryptocurrency to transfer the funds at a faster pace. This is what is fueling the demand for Ripple.
Recently, the company also put its own holdings into an escrow account and put the condition of releasing a predetermined number of XRP tokens each and every month. This constricted the supply of tokens and fueled the rally which XRP has seen recently.
With the effect of Bitcoin rising rubbing off on the other cryptocurrencies as well, it remains to be seen where Ripple finally ends up in terms of market capitalization. In the anticipation of many more banks joining the Ripple protocol and using it on a day-to-day basis, many investors are investing in Ripple significantly in order to reap the rewards when the cryptocurrency actually becomes the most popular mode of money transfer.
With the company also ensuring that the supply is constricted, the backers of the cryptocurrency are able to ensure that it retains the value of the cryptocurrency. This is why the relentless rally is seen in the Ripple token in the last few days.
After hitting a high of $ .89, it is back down to $ .75. It remains to be seen whether it again hits a new high in the coming days or whether it falls much lower from the current levels.