Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.
Analysis of current situation on cryptocurrency market reveals that Bitcoin’s major rival strengthens positions with rising market capitalization and increasing trading volumes.
Market capitalization is a crucial indicator of asset performance, which is estimated by price per unit and circulation supply multiplication. The higher market cap reaches, the more enticing becomes digital coin for investors.
While Bitcoin takes a dive, alternative coins like Ripple and Ethereum shake investors’ lack of belief system to the very core making a significant rally. At the press time, Bitcoin has the largest market cap of $237 billion, but in case the king of cryptocurrency continues to drop in price, it will not take long for Ripple or Ethereum to usurp Bitcoin’s throne.
According to the market scope, Ripple only needs to climb the mark of $6.14 per unit to conquer leadership with its immense circulation supply. Fortunately for Ripple supporters, from the begging of 2018 the token is continually trading on positive momentum. Today, according to the CoinMarketCap, Ripple has 38,739,142,811 virtual coins in supply for $1.85 per token. Its market cap currently makes more than $71.81B.
However, Ethereum, yet the second major digital currency, is not likely to step back. After Coinbase declined to list Ripple, the token’s price has fallen dramatically by over 10% , while Ethereum remained and still remains rock solid.
At the time of writing, Ethereum is trading at $1,352 with 96 891 620 tokens in circulating supply available. Current market cap makes $106.55B, according to CoinMarketCap. The token needs to gain around $2,453 to surpass Bitcoin value, which is less than Ripple’s calculated percentage point.
Who is going to beat Bitcoin faster remains to be seen, but both cryptocurrencies benefit from having larger circulation supply than the current King. Thereby with relatively lower price for each digital coin, Etherum and Ripple can achieve higher market capitalization than Bitcoin does.
At the same time, blockchain community doubts that Ripple is a “true” cryptocurrency referring to its neglection of decentralization principal. Following the announcement about Ripple’s adoption in banking system to streamline international transaction, large financial institutions acquired large amounts of coins, which resulted in Ripple be considered not so decentralized as Bitcoin is.