Ripple is very close to overtaking bitcoin if it is to reach just $7. Honestly that sounds very unfair judging by the fact bitcoin costs over 13K per head. Well, take a breather because it’s not like how you think it is. It will surpass bitcoin in terms of market cap.
Ever since cryptocurrencies became a mainstream thing in the past five years of this millennial, almost everyone has been trying to know all that there is about them. Now if you are one who has been searching much about cryptocurrency you will have definitely come across the phrase “market cap”. It basically is the value of that digital currency as a whole that is in circulation. It is derived by multiplying the virtual coin’s supply by its per unit price. It is in terms of this that Ripple’s XRP could overtake bitcoin to become the largest cryptocurrency.
Ripple Or Ethereum Could Be Largest Cryptocurrency
Recently we saw Ethereum dethrone the XRP to become the second largest cryptocurrency worldwide. This isn’t anything shocking, judging by the fact that the number of coins in circulation for each currency is different as well as the prices of these currencies keep changing by the day.
Bitcoin is presently the largest cryptocurrency in terms of market cap. But judging by the sluggish start it has had since the beginning of this year and the contrastingly good start the other major cryptocurrencies have had within the same period, things could change at any point in time.
According to CoinMarketCap, Ripple has 38,739,144,847 digital coins in circulation presently. At the price of $2.49 per XRP, it’s market cap is $96.46 billion whereas that of bitcoin sits at $254.2 billion dollars at its $13,000 price range. Should bitcoin still stay within this same range and XRP rise to just $6.57 (164% rise), it would definitely cross bitcoin’s market cap to become the largest cryptocurrency in the world. This is largely because it has a lot of coins in circulation than bitcoin – over fifteen times bitcoin’s total coins in circulation.
Looking at how the XRP rose by 36,000 percent only last year, it is safe to say that XRP could become the world’s largest cryptocurrency this year. This is still hypothetical though.
The XRP isn’t the only cryptocurrency with the potential to usurp bitcoin in this year. Ethereum has crossed $1,000 and has stayed there at least for the past week and should It be able to cross $2,700 in the course of the year it could also become the largest cryptocurrency. A while ago these seemed impossible, but truth is they no longer are inconceivable.
Both these cryptocurrencies are all benefiting from the fact that they were designed to have way larger number of coins capable of being mined and circulated after their developers learnt from the shortcomings of bitcoin. What should also be noted is that all these possibilities are based on current market figures, should bitcoin get back on track to it’s bullish run, things could get a bit tough for both afore mentioned altcoins.
Ripple in particular has much advantage over bitcoin considering the fact that it is used and being heavily considered to be adopted and used by many large companies as well as most of Its coins are actually owned by the developing company itself. Thus it definitely isn’t as decentralized as bitcoin and this makes price volatility a lot more regulated and controlled as it is not so decentralized like bitcoin.
Featured Images via Cointelegraph