By Gaurav S. Iyer, IFC Published : September 22, 2017
Interestingly, these price swings are starting to have an effect on the pecking order of cryptocurrencies. Litecoin already fell below Dash to the number six position.
Ripple, meanwhile, is quickly closing the gap between itself and Bitcoin Cash. Their two market caps are roughly 3.62% apart, meaning that a small cross-ways swing would make Ripple the third most valuable cryptocurrency.
If this happens, the top three cryptocurrencies will represent the big philosophical differences in how blockchains are constructed. Bitcoin is the quintessential public blockchain, Ethereum is built for decentralized applications, and Ripple is an enterprise-focused blockchain.
As the market grows more sophisticated, investors will start to recognize these differences. In fact, yesterday’s price movement suggests that glimmers of this trend are starting to emerge.
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Remember that Ripple was down against the U.S. dollar, but up against Bitcoin.
That said, we’ll need to see an uptick in demand for XRP to close the gap with Bitcoin Cash.
Only $43.58 million worth of XRP coins changed hands yesterday. By contrast, more than $432.6 million of Ripple was traded at the end of August.
Korean exchanges like Bithumb, Korbit, and Coinone continue to provide the vast majority of trading activity.
In order for our $2.00 Ripple price prediction to manifest, there needs to be greater and more widely distributed volume. But what catalyst will bring that about? What piece of Ripple news will restart the bullish rally?
We do not believe that a single piece of Ripple news will carry the cryptocurrency to $2.00. It is far more likely that XRP bears will suffer death by a thousand cuts.
A cut will come each time Ripple adds a new financial firm to its network, expands into a different country, or makes technical progress on key infrastructure. This momentum will gather steam and eventually reach a tipping point.
But it’s important not to time this XRP trade. Too many investors have lost money thinking they can outsmart the market at every turn. You’d want to enter the currency at the lowest possible price point, then wait for the investment thesis to unfold.
That’s a winning strategy.