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In what is proving to be a closely fought battle, Ripple's XRP is once again a distance from Ethereum from its cryptocurrency position number two from the market capitalization, having briefly reached the enterprise. last week and earlier.
Fight for 2ND Place
Bitcoin is the undisputed king of cryptocurrencies with its dominance ranging between 32% and 55% in the last year and a half. Ethereum has enjoyed a happy and safe second place spot. Last year, when Ethereum quickly gathered momentum, people started talking about the possibility of a "flippening", with Ethereum replacing long-term bitcoins.
What even the experienced investors and traders did not expect was the exaggeration that occurred last week after the sudden rise in the price of Ripple. While XRP was in second place only for a short period of time before returning to third position, it has since narrowed the gap.
According to the popular CoinMarketCap market aggregator, at the time of printing the difference between the market limits of the two cryptocurrencies was less than 3%. At the time of writing, the market capitalization of Ethereum stood at $ 23.87 billion with the following XRP at around $ 23.31.
Reasons for the fall in the price of Ethereum
From 1 August 2018, Ethereum has seen its value decline by over 44% – more than any other Top 10 cryptocurrency on CoinMarketCap. So, what led to such a drastic price drop?
Ethereum, a second-generation blockchain, has seen a good price trend last year due to an increase in demand, being used as a means of buying tokens in ICO sales. A slowdown in the market this year has been holding back and the need for the token has declined.
In addition, projects that held ETH collected from their ICO sales, saw their overall market fall and the value of the token falling far below their launch price. Panic broke out and the projects started to download their holdings from the PES in trade, fearing a further decline.
What caused Bull's Ripple?
In contrast, XRP has actually raised the price by more than 30% since August 1, no doubt due to much of the flow of positive developments in recent weeks. After announcing the launch of its xRapid solution, the market cap went from $ 10.9 billion to more than double in just 3 days.
The addition of some big names like PNC Bank to RippleNet added momentum to the bullish price action. The price, after a short break and consolidation, continues to move towards the top. If the momentum continues, XRP will rise again in second place on CoinMarketCap.
If Ripple can permanently remove Ethereum from its number two position, however, it depends on how fast it can get on board multiple banks up to the growing customer list and the adoption of its recently announced xRapid offer. Ethereum, on the other hand, should accelerate to solve the problem of scalability if we want to maintain its position at number two.
Do you think the XRP can move ETH permanently from second place? Let us know in the comments below.
Images kindly granted by PxHere, Shutterstock
