Exactly one year ago one XRP was $0.006. Now, it stands at $2.84 across exchanges. An astonishing rise of some 500x, more than bitcoin, ethereum, or bitcoin cash.
Its market cap has today risen to $106 billion, the highest level achieved by any currency except for bitcoin, standing at nearly half that of btc’s current market cap.
While its trading volumes are at around the same level as eth, close to $5 billion, with South Korea handling much of it.
After ethereum briefly regained its second position, XRP begun rising again, now nearing a price of $3 per token.
What is causing this astonishing price rise remains unclear, with some suggesting it is mainly because banks are testing the use of Ripple.
Banks, however, are testing many other blockchain products too, including Ethereum and Hyperledger, suggesting that might not be the full story.
Instead, perhaps the very low price per token might have aided speculation as XRP might seem cheap at near $3 compared to Bitcoin’s $15,000 or ethereum’s near $1,000.
That ignores Ripple’s full market cap of some 100 billion tokens, compared to btc’s just 21 million and eth’s 100 million.
Only around 40 billion XRP have already been issued with Ripple the company able to sell some 1 billion of them a month. Moreover, there probably would be nothing to prevent Ripple from increasing its supply of 100 billion.
Ripple’s founders have another 20 billion XRP, translating now to almost $60 billion. An amazing amount considering XRP’s inventor left the project.
XRP, however, doesn’t seem to care and considering the global market cap has now reached a new high of $700 billion, its rise might be due to new funds.
In which case, it remains to be seen for how long Ripple will be able to keep running the show. Usually, it is only for a brief few days, but with South Korea’s game of chairs now finding its way to XRP, who is to say.