Right at the beginning of the Bitcoin Cash hash wars on the 15th of November, we had mused over the possibility of XRP retaining the number 2 spot in terms of market capitalization. With the decline of Bitcoin from $6,300 to $5,500 on that day, we had seen less than $100 Million in market capitalization separate XRP and Ethereum (ETH) in the crypto markets.
We had also predicted two scenarios as follows:
- XRP’s stay at the number 2 spot would be temporary given past occassions when Ethereum would later regain its place
- XRP’s position at number 2 might become permanent if the Bitcoin Cash Hash Wars persisted
The SEC and ICO Factor for Ethereum
However, on the 16th of November, the Securities and Exchange Commission (SEC) released a settlement that put all ICOs on notice about issuing unregistered securities. This in turn has affected the value of ETH in the sense that many investors are uncertain about its future. ICOs were seen as the major reason why ETH thrived in the market from early 2017 to mid 2018.
The Case for XRP Continues to Grow
Further looking at the charts on Coinmarketcap, we find that the difference between XRP and Ethereum now stands at $3.255 Billion in market capitalization.
XRP has continued to thrive in the markets due to the following:
- Its ledger does not depend on miners. It runs a consensus protocol so it will never be the victim of a hash war like the one present with Bitcoin Cash
- Bullish news on the progress of cross-border payments. The Ripple company continues to secure partnerships on a global scale
- Coinbase Custody announcing support for XRP
- A large community of XRP enthusiasts, holders and traders
- Social media sentiment around the digital asset
- Hope of Binance adding XRP as a base currency
Binance has Taken Notice of Requests to make XRP a Base Currency
It is with the final reason that XRP might find itself getting closer to Bitcoin in terms of market capitalization. The CEO of Binance, Changpeng Zhao, recently hinted at how the digital asset can become a base currency on the platform.
With such a possibility, the excitement around XRP could multiply to the point where its market capitalization might catch up to that of Bitcoin. Currently, XRP is around $70 Billion away from flippening BTC in terms of market capitalization.
Doing the math and using current market cap figures, XRP need only be valued at $2.25 to achieve this feat. This value is not impossible given the current momentum possessed by the digital asset in the crypto markets.
What are your thoughts on the recent gains exhibited by XRP? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Crypto Crimson or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.