Ripple has experienced a parabolic rise recently, up some 10x in just two weeks from around $0.03 to $0.33 as of writing with its market cap increasing from an insignificant amount to more than $12 billion, up $6 billion in just one day.
The rise appears to have been spurred by a press release from Ripple Labs that ten banks had joined the network after 47 Japanese banks has started using it in commercial production.
Japan, however, does not seem to be showing much ripple trading volume, with the currency there puzzlingly trading at half its market price, but the news seems to have spurred a bull run.
Its 24-hour trading volume is nearly $400 million with its price increasing by more than 35% just today while its market cap now stands at second position valued at $4 billion more than ethereum.
Ethereum, however, has a vibrant and innovative ecosystem with many participants. Numerous projects are launched on the platform daily, with ICOs now valued at $1 billion while the Ethereum Name Service keeps increasing in the amount of bids it secures.
Moreover, many prominent household brands, including JP Morgan, Microsoft, Intel and many others, have joined the Ethereum Alliance with the platform having industrial as well as financial use.
Ethereum, for example, is being used in energy micro grid pilots, both its public chain and private chain depending on the project. It is further used in hundreds of charging stations for electric cars, to securely authenticate goods ownership, in projects that aim to decentralized social networks, music and on and on.
The platform handles more than 100,000 transactions daily, second to only bitcoin, while ripple barely seems to have any use, and its application appears to be mainly for banks in their back end, but probably at a more expensive rate than a public blockchain because ripple has intermediaries.
Moreover, ripple doesn’t really even use a blockchain, instead having hubs in a bank like IOU system. It doesn’t really have any community or ecosystem or projects or businesses that use it, or, really, anything.
So the rise is probably just a temporary blip which ripple has experienced a few times. It sharply rose and fell in November 2013 and November 2014, for example, with ripple seemingly unable to hold value because some 80% of its supply is held by just two or three entities with Ripple Labs alone holding some 67%.
It’s hardly worthy of a valuation higher than ethereum which has maintained and increased its value rather than just temporarily appreciating to then come crashing down to sub pennies as ripple has done every time it has risen.
So, it may go back where it came from, eventually, with some of its value perhaps moving to ethereum, which was expecting a flippening but most likely did not expect itself to be flipped, albeit perhaps only briefly.