How Is The Price of Ripple Determined?

by& nbspRushali Shome

The past year has been a happy one for crypto prices.

However, in the midst of that topsy turvy world, if there is one cryptocurrency that has not been too badly for itself, it would be Ripple (XRP).

This is the year when Ripple looked to come on its own. It pushed Ethereum off its second spot to become the second largest cryptocurrency of the market, in terms of market cap.

It is a part of the market that is the role of the market, and it is the role of the market.

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Does Ripple Work Like Other Cryptocurrencies?

First off, it becomes essential to clarify that Ripple does not really work like most other cryptocurrencies.

A typical example of cryptocurrency is of course, Bitcoin. For Bitcoin and similar coins, mining is a crucial aspect of supply. It is explained in our article, how is the price of litecoin Determined ?, mining on one hand determines the supply side of the demand-supply, that ultimately decides the price, and on the other hand miners are faced with.

Now, Ripple does not involve any mining at all. Instead, its supply is fixed at 100 billion, which was created by the Ripple developers' team right at the outset.

Its current circulating supply is 40.79 billion. Cryptocurrencies is supposed to be, it is quite different from other crypto coins and tokens in the market, relying on its underlying technology for support.

Then What Are The Factors Determining Ripple's Price?

Let's quickly look at the Ripple's price.

1. Technology at The Core

The adoption of any cryptocurrency is a major driver of its price point.

Given that Ripple is a widely successful payment protocol. Its protocol significantly helps with cross-border payments.

To top this off, Ripple has also been very hard-working partnerships with big names in the business which deserves a separate category of its own.

2. Notable Partnerships

This point flows from the previous one. This is because Ripple's strong technological core makes it a viable partner for giants such as American Express or JP Morgan.

Ripple. Teaming up with the legacy and repute of their own.

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3. Speculation

Speculation is a key factor that drives the prices of a lot of assets, including cryptocurrencies.

In fact, a clear example of this was seen when the price was set to be used in Korean exchanges. It was seen that the moment Coinmarketcap removed from the exchange rate from the price list, there was a slump in the Ripple trade in the West.

Clearly, how Ripple is a performance and how others are responding to it.

He was encouraged to huge spurt in prices.

To understand how Ripple works even better, we highly recommend you check out our beginner's guide to Ripple.

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Rushali Shome

Rushali Shome is a history undergraduate with a keen interest in puns, politics and beyond. When not in the "Notes" section of her phone, she can be found trying to catch the eye at the restaurants or weddings for a second helping.