In recent days, ethereum has lost some of its value, sliding it down and losing its coveted second position as the most precious crypt in the world.
This 2ND the position was taken over by Ripple, which increased by 8% even with an initial drop of 9.5%. It is important to note that Ripple's gains have occurred when other cryptosics, including bitcoins, have suffered.
The Ripple rally Saturday helped to grow its market capitalization to $ 19.1 billion compared to $ 15.92 billion of ethereum, making it the next most valuable cryptocurrency.
Ripple and Coinbase Custodial platform
Coinbase worked on a custody solution aimed at attracting institutional investors. In August, Sam McIngvale, one of Coinbase's product leads, said the exchange was actively seeking to add the best cryptocurrencies and ERC tokens to this solution, making it available to institutional investors when they enter.
He wrote that,
"Coinbase Custody is exploring the addition of many existing and future cryptographic resources only for storage and will work to add them as quickly and securely as possible, and we have not yet considered these assets for trading. making this announcement internally to Coinbase and to the public at the same time to remain transparent with our customers on support for future resources "
As part of its efforts, Coinbase Custody added Ripple to its custody platform, making it one of the cryptocurrencies on which institutional investors can invest when they come on board. Even better, they can buy it here and leave it with Coinbase, which will act as the trusted custodian for those cryptos.
The SEC is possible delay
This is coming on the back of the SEC crackdown on initial fraudulent and fraudulent coin offerings (ICOs), as well as further regulating those projects that should be classified as securities. While bitcoin and ethereum have recently passed their control and are not categorized as non-security, Ripple has not been authorized.
So while the Coinbase and Gemini exchange are really interested in inserting Ripple into their custody service, they can not do it now, because of how long it will take to do it. At this time, exchanges are awaiting authorization in the form of a complete guideline from the SEC to integrate XRP.
Integration bodes well for XRP
While integration will take time, the simple availability of custody services to include Ripple in its encrypted list available to institutional investors is an excellent indication that cryptocurrency is well regarded. Even more, his interest in institutional investors shows that even large organizations believe in its capabilities and potential future.
Ethereum under pressure
While Ripple has enjoyed the last few days, ethereum on the other hand, it did not go so well. With its downward fall in value and market capitalization, cryptocurrency has been under pressure.
This is not surprising as the SEC crackdown will probably affect a ton of ERC 20 tokens created on its platform. In fact, most of the ICOs in 2017 and 2018 were held on the platform. Greater regulatory control of the platform may not be positive for cryptocurrency.
According to Larry Cermak, former editor-in-chief of Diar,
"There is a big misconception that ICO companies have liquidated most of their holdings in ETH … On average, all these projects have moved or liquidated 62% of the amount initially collected. words, still hold 38% of the amounts initially collected ".
Most of the founders of ICO often had to sell their ether in trading. This huge volume of sales has somehow influenced the value of ether in the market and continues to do so even now.
The current state of the market is much less than ideal, and it is likely to remain so for a while. This is clearly seen by the lack of a clear fund and by the lower trading volume.
As long as these conditions persist, it is very likely that we will continue to see a downward trend in total market capitalization. And if the market were to recover, it could take a while before the market reaches the $ 300 billion market cap again.
But again, all these are simple speculations based on current market trends. The encrypted industry has always been full of surprises. Most people did not expect the market close to nearly $ 800 billion, but they did so at the start of this year.
So, market observers, investors and traders will have to keep their fingers crossed.