Towards the end of last week, Ripple overtook Ethereum as the second highest ranking cryptocurrencies and now the two are climbing to see which one can hold the spot.
Ethereum and Ripple are both major cryptocurrencies in the blockchain space. For the longest time, Ethereum had sat in the second position of highest cryptocurrencies in terms of market cap. Over the weekend, however, this shifted and Ripple overtook Ethereum and took the ranking.
On Friday Ripple had a market cap of around $26 billion USD while Ethereum had a market cap of approximately $23 billion USD. Although Ethereum has reclaimed the position at the present time of writing, it is a major deal for those invested in XRP that the cryptocurrency could shake the market rankings.
Whether or not Ripple will dismantle the position again remains to be seen. If the cryptocurrency’s trajectory can maintain the explosive incline it has had over the last few days, it could very well push Ethereum to the third spot and settle in comfortably.
It is receiving a wave of attention. What is it about?
Although categorized as a cryptocurrency, Ripple acts very differently to other digital currencies at a fundamental level.
Boasting itself as the “fastest and most scalable digital asset”, Ripple is a payment protocol which was released in 2012 as a new, updated version of Ripplepay. Based on the software created in 2004 by Ryan Fugger, a Canadian web developer, Ripple was founded by Chris Larsen and Stellar founder Jed McCaleb, and together with Arthur Britto and David Schwartz the system was reiterated and designed in order to create a technology almost like Bitcoin, but without using blockchain technology and not looking for a means of payment, but rather a channel for quick payment.
Although, like other cryptocurrencies, Ripple can be used for peer-to-peer trading – or it can be moved from person to person – that is not truly the main purpose. Instead, the primary emphasis of the Ripple platform is to provide the ability to move large quantities of money across the globe as quickly as possible. Because of this, it is built for enterprises and banks, rather than individual users.