What’s Going on with Ripple Prices?
Over the last week, XRP prices gained 5.05%, bringing the Ripple to USD exchange rate to $0.251055. Meanwhile, the Ripple to Bitcoin rate continued to be barely visible at 0.00002610 BTC.
Ripple prices have increased in the last few weeks, but not as much as Bitcoin or Ethereum prices have. Some investors seize on this as proof that XRP is a second-rate cryptocurrency.
It is a ludicrous argument.
The real reason Ripple lags behind them is that it’s not traded on as many U.S. exchanges. Bitcoin and Ethereum are both easily available. Investors simply go to Coinbase, set up an account, and begin trading. For Ripple, you have to go to lesser known exchanges like Kraken.
Even then, the liquidity of XRP/USD pairings is lower than that for ETH/USD or BTC/USD. That is most certainly a contributing factor to Ripple’s lagging performance.
Moreover, Ripple is less understood than Bitcoin or Ethereum.
It’s easy to swallow the idea of a digital currency that we can use for day-to-day transactions. Even if you don’t think the idea is feasible, you still understand it. By contrast, Ripple’s “Interledger” software that connects blockchains is hard to understand.
But that doesn’t make it worse. In fact, it means that Ripple will have fewer rivals than Bitcoin or Ethereum because it is solving a very specific problem in international payments transfers.
I personally find this a compelling reason to invest in XRP, because B2B approaches generally are more successful than ideas that rely on consumer preferences.
Ripple Price Chart:
How Bullish Are Investors?
Caveats aside, investors are growing more bullish on Ripple. Trading volumes have stayed above $100.0 million since early November, frequently rising above $200.0 million and even $300.0 million. At one point, we even saw XRP volumes top $1.0 billion.
Right now, the 24-hour gauge on trading activity shows that investors swapped $192.49 million yesterday, up from $133.30 million. A lot of this demand came from South Korean exchanges such as Bithumb, Coinone, and Korbit.
Within the last few weeks, Bitcoin, Litecoin, and Ethereum have grown into our 2017 forecasts. We were right on them. As such, we maintain faith in XRP, which is likely going to cross $0.40 before the end of 2017.
After that, it could accelerate towards our $2.00 Ripple price prediction for 2018.