For those of you who are unfamiliar with the crypto world or new to crypto investment, Ripple is one of the leading altcoins available. Unlike Bitcoin, instead of using the Blockchain platform, Ripple uses its own intuitive payment system that relies on peers to verify the transactions. It is open-source and has had backing from a Google (ABC) umbrella company Google ventures.
Currently, it is one of the top 5 Crypto tokens and has held a favourable condition since it first launched. Recently, the Ripple price has increased, and this article takes a look at several factors that are causing this price increase.
Investor Confidence is High
Ripple has always been well regarded and widely received by the сrypto community. This continued trust has made it a very popular and influential altcoin. Ripple as a company has worked with the crypto community to create a transparent and open environment where feedback is actively taken on board.
As a result, the coin has enjoyed continued success, being actively used for transactions and traded regularly.
Bitcoin is Doing Well
This might sound counterintuitive, but Bitcoin’s value always has a knock-on effect among other crypto tokens. This is because Bitcoin is at the forefront of the crypto world – the more people hear about Bitcoin, the more people invest in it.
As Bitcoin continues to gain popularity as a viable currency in its own right, new investors begin to dabble in other cryptocurrencies. As a result, if Bitcoin does well, the rule of thumb is that altcoins also benefit from it.
Real World Implementation
Behind the Ripple token is a smart and easily implemented protocol called the Ripple Transaction Protocol (RTXP). This platform is actually now adopted by some very prominent banking corporations such as American Express, Standard Chartered, and UBS.
Other banks are following suit at a rapid rate, and it is expected that many financial institutions and banks will adopt the RTXP as time goes by.
Because of this real-world application, it is often said that Ripple is the first cryptocurrency to really penetrate into the mainstream world with a viable platform that fits financial institutions regardless of their size.
Bouncing Back from a Poor First Quarter
Completely outside of the Ripple token, crypto as a whole had a devastating first quarter, and unfortunately, Ripple wasn’t left unscathed.
The prices fell drastically after consecutive bad news had flooded the cryptocurrency world. Facebook disabled all advertising of crypto, regulators banned some tokens, governments were introducing restrictions and more robust tax measures – the list goes on.
Cryptocurrency became a very risky market as a result of all of this bad news, and Ripple suffered greatly along with a good many others. In fact, it is estimated that Ripple had as much as $10 million wiped from its value in the first quarter alone.
Fortunately, the industry has weathered the storm and Ripple is showing some great Q2 gains along with many other tokens. Be wary of any future developments in the real world as these do tend to have a large effect on crypto prices.
Ripple is Tradeable
Ripple is continuously and regularly traded. It is seen as a reliable currency that holds value and, as such, investors actively trade XRP. As of May 23, the 24-hour trade volume of Ripple comes to $375,019,000. This puts Ripple in a prominent market position as it is comparatively more tradeable than many other altcoins on the market.
Because Ripple is popular among traders, its price remains fairly consistent.
Ripple is an Innovator
From their earliest point, the Ripple company has looked to change minds, set trends and create new and dynamic ways to transact securely. The Ripple Transaction Protocol is a prime example of the kind of forward thinking you can expect from Ripple.
Ripple actively invests large amounts of money into blockchain and other cryptocurrency related companies in the hope of growing the crypto community further. As well as putting money in crypto technology, they also heavily invest in business start-ups. This forward momentum from the founders is certainly being pushed through to the coin, and it remains as popular today as it was when it was launched.
Should You Invest in Ripple?
Currently, Ripple is sitting comfortably in the top 3 cryptocurrencies, along with Bitcoin and Ether. Each uses their own unique platform to function and each has their own unique advantages.
The price of Ripple is now $0.62. In comparison with Bitcoin, investors can easily pick up plenty of Ripple without breaking the bank balance.
Whether or not you choose to invest in Ripple, comes down to a number of key questions.
- Do you think investor confidence will remain high?
- Will it be the first mainstream crypto?
- Is Ripple going to provide a great ROI?
Only when you have researched the coin and the market, will you have an idea of whether Ripple is a currency you want to invest in. Currently, the price is increasing, but as Q1 showed, cryptocurrency is very susceptible to real-world politics and this isn’t always a guarantee of continued success.
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The post Ripple Price Goes Up: What Are the Reasons? appeared first on Nigeria Technology Guide.
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