What Is Allowing Ripple to Grow as Much as It Has?

by Andrew McGuinness  //  aug. 14, 2018

Whether you are an investor in cryptocurrency yourself, or simply interested in the topic, odds are you have witnessed the growth of bitcoin and other cryptocurrencies on the market since 2015. This was when digital currencies really started making it big and expanding to extents we had never considered before.

Since bitcoin first burst into the scene in 2009, countless other digital currencies have been developed and have begun to thrive. Not only this, some are starting to journey down a path that may lead to even higher success and profits than that of bitcoin. According to market cap, ripple has actually earned first place among cryptocurrencies, speeding past ethereum and bitcoin cash. But what has allowed it to reach this level of greatness? What has caused ripple to grow as much as it has within a sea of other cryptocurrencies?

1. December 2017

With December 2017 came a fair amount of spikes in the market for ripple. While it was being sold in January 2017 for $0.006 for each token, just under a year later, it reached a trading price of $0.25 for each token. The very last weeks of 2017 have allowed ripple to enjoy its highest points yet, raising 30,000% from 2017 to 2018.

Like bitcoin, it has taken ripple years to become profitable and known at all. It was first developed in 2012 and it was not until 2017 that ripple first started to be taken into account and taken seriously as a digital currency.

2. Uncharted potential with financial institutions

Ripple was first created in order to aid in the financial transactions at a global scale. This was a particularly attractive feature for banks far and wide. This allows ripple to appear more legitimate and official. However, cryptocurrencies are generally known for their aim to steer clear of all financial institutions. One of the biggest benefits of digital currencies is, after all, its decentralized method of transaction, finally able to exclude financial institutions from your purchases altogether.

Ripple saw this as a gap in the cryptocurrency market, no other digital currencies were as willing to collaborate with banks in order to form an alliance mutually relying on each other. This way, banks are allowed the advantage of substantially more efficient, speedy, cost-effective transactions at a global level, and ripple is allowed the advantage of legitimacy in comparison to its fellow cryptocurrencies not involved with financial institutions or at least not as many of them.

3. Stands out from the competition

Ripple is connected to more international banks than any cryptocurrency on the market. It has gained an incredibly prestigious pool of investors from the banks around the world that have become interested in ripple. What makes ripple stand out is the fact that tokens are not mined by just anyone.

Tokens are completely controlled, created, and issued by ripple. While 100 billion ripple tokens are in existence at the moment, 38 billion tokens are out on the market being transacted. Executives at Rippleā€™s company have actually become incredibly wealthy thanks to the cryptocurrency, earning billions within a matter of weeks.

Conclusion

The world of cryptocurrency has been expanding to an incredible extent since bitcoin, the first digital currency, was first developed in 2009. Because of the sheer number of different cryptocurrencies on the market, it is more necessary than ever to stand out.

This is why ripple has been offering something new to its investors. Not only does it offer interesting advantages to financial institutions, but its way of controlling and distributing tokens through the company of Ripple itself is unlike the more prominent digital currencies on the market.





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