Market Cap Of Ripple Exceeds 40% Of Bitcoin
Over the past couple of weeks, there is an astronomical rise in the price witnessed by the Ripple, which is same as Bitcoin. However, its price increases by 70% a few days ago in just 24 hours.
The plans to place 55 billion XRP into a transparently managed escrow account has been announced by the company that offer a greater certainty and market transparency regarding present and future XRP supply.
The company will be able to cryptographically lock up 55 billion XRP by using their recently launched Escrow feature. It will be released for the use on a monthly basis at a time. At the end of the month, all the unused XRP will place back into the queue of escrow.
It results in the addition of another layer of stability by regulating the demand and supply to the market. All the questions or concerns regarding the large-scale of XRP can be removed by Ripple by offering investors a predictable schedule of supply.
Astonishing rise in Ripple’s market cap
As per the coinmarketcap, the market cap of Ripple reaches to a whopping amount of $ 12 billion. It is even bigger than 40% of the Bitcoin’s market cap that is presently at $ 28.6 billion. However, Ripple has more than 38 billion coins in circulation in comparison of Bitcoin’s 16.3 million coins.
A single Ripple costs around 32 cents. The market cap to a great number can be inflated by the sheer amount of coins in circulation.
Ripple has a different way of working because it attracts more traditional financial institutions and its protocol has been adopted by a range of banks in several countries. It doesn’t use the traditional proof of work algorithm as in the case of Bitcoin. Instead of it, an iterative consensus process is used by Ripple.
Additionally, it acts as a decentralized currency exchange and the users can sell their XRP along with using traditional means.