Ripple has gone ballistic, doubling since Tuesday from 25 cent to now 50 cent, up 50% just in the past 24 hours.
Its volumes have also spiked, up 4x since yesterday to now above $2 billion with South Korea and Japan leading for now.
This astonishing rise follows news that a Saudi and a South African bank has joined RippleNet, a payments system with one of its component, xRapid, to be launched next month.
xRapid and RippleNet in general are basically a method of transferring fiat through crypto rails. So you buy XRP on say a British exchange and then send that XRP to a say South African exchange with the South African money then moving through the fiat rails.
This can work with any crypto, so one can use eth or bitcoin, with crypto remittance companies established since at least 2014.
Just how well it would work, however, is not clear because although the crypto can move fast and cheaply, sending the fiat to exchanges on one end and then withdrawing it at the other end can be slow and can be costly in fees.
Ripple, nonetheless, has turned very bullish and is now close to taking second position in market cap with it standing just $2 billion from overtaking eth:
The fully-diluted market cap of Ripple is in fact more than twice that of eth and by this measure even Stellar has a higher market cap than eth.
This measure counts the total supply of Ripple at 100 billion xrp, rather than just the circulating supply of 39.8 billion. The other 60 billion XRP is held by Ripple the company or Ripple founders.
They do sell now and then their holdings, with ripple tending to not really keep its gains in part as the highly concentrated xrp ownership may lead to more concentrated selling.
The above measure isn’t really used because it isn’t quite reflective as shown by SolarCoin, which has a market cap of just $3 million, but their 98 billion non circulating supply gives them by this measure a $6.5 billion market cap, making it a somewhat misleading trick.
That’s one of many reasons why Ripple often courts high levels of criticisms. The other prominent reason can be summarized in one picture:
While we have much information regarding the movement of most other public blockchains, for ripple none is provided. That’s because the coin is centralized, so you can’t just download your own node and verify all matters for yourself.
That means you have to trust that the non-circulating supply is 100 billion and not a trillion, just as you have to trust Ripple the company to not take your funds as they currently run more than half of the 21 nodes.
The coin has nonetheless managed to keep third position in market cap since at least 2014, with the price action in the past few hours potentially due to a margin calls cascade as many shorts closed at some speed:
These price movements seems to have begun changing sentiment across the crypto space with bulls seemingly having a bit more courage.
Ripple usually tends to open and close the crypto show as its high supply quickly reflects any bullish or bearish sentiment. Other coins then tend to take their turn in entertaining cryptonians, with eth now potentially offended.
Yet whether history will rhyme and the concert so opens again now that summer has given way to autumn, remains to be seen.