The price of Ethereum has reached a new record high of 1,410 USD. The market moves from the Ripple in Ethereum

The price of Ethereum has reached a new record high of 1,410 USD. The market moves from the Ripple in Ethereum

Ethereum has recovered its position as the second cryptocurrency on the market, adding to the capitalization of nearly 60 billion USD in just five days.

On 4 January, the market valuation of Ripple decreased from 148 to 73 billion US dollars, it is reduced almost 2 times a week. On the contrary, the market valuation of Ethereum has grown from 85 to 135 billion US dollars, and growth over the last 24 hours was 11%.

The recent spike in prices for Ethereum can be largely explained by the sale of XRP, which is probably due to fears of the market about the sudden growth of Ripple. Ripple sharp criticism by analysts such as Ryan Selkis, could also lead to the decline of trust in Ripple.

29 December Selkis noted that the majority of banks-partners is not actually using the Ripple network Ripple for processing billions of dollars on a regular basis. Given that the volume of transactions Ripple network and its partner banks is the only two factors that could justify a market capitalization of a project, the market interest in Ripple has decreased in the short term.

Here is what is says about using XRP my source in one of the largest banks: I don’t know about any of the banks that a) would use it, or b) interacted with him in any way, since 20% of all available XRP belong to the founders.

Product that Ripple offers to banks is simply a messaging tool with some intelligent cryptography, to guarantee that transactions are atomic. The model used liquidity is the same as for banks-correspondents.

See also Forecast the price of Ripple to 2018 (updated version)

In response to criticism of Selkies and Nathaniel Popper from The New York Times that banks do not use the Ripple network for a major transaction, the Executive Director of Ripple brad Garlinghouse firmly stated that there are several banks that regularly uses the platform xRapid for processing large-value payments.

Over the past few months I have spoken with the banks and companies that deal with payment processing. They do plan to seriously use xRapid (our product liquidity XRP). Here are just a few of their statements:

We see that it is 100% more effective than what we do now.

All pilot projects xRapid went well.

It is much more efficient than our process. We want to continue to integrate with xRapid.

XRP is a much more effective way of cross-border transfers than what we use now.

There are many small and medium-sized banks, for which the Commission load is too high. They are happy to take the opportunity to send money directly.

However, regardless of the application Garlinghouse, the value of Ripple has fallen sharply over the last week, and traders took advantage of the situation to switch to Ethereum.

Market capitalization Ethereum may have grounds

Ethereum is one of the few blockchain networks, which has a reasonable market assessment. Decentralized applications built on top of Ethereum, such as CryptoKitties, 0x, EtherDelta, Status and OmiseGo already working with a large user base and daily treated hundreds of thousands of transactions.

In the short term it is likely that the trend growth rates for Ethereum will remain, as long as there are no factors threatening the work of decentralized applications.

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