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Ripple‘s XRP toppling of Ethereum (ETH) is not unprecedented as evinced by events on December 29, 2017 when Ripple overtook Ethereum to become the second most valuable cryptocurrency in the world by market cap. It didn’t last but it happened.
However this time around, Ethereum might be unable to oust Ripple (XRP) from the Number 2 position.
On The Basics
Both Ripple (XRP) and Ethereum (ETH) are cryptocurrencies that utilizes blockchain technology. They both have their own unique virtual currency that can be traded on various popular cryptocurrency exchanges.
On both Ethereum blockchain and Ripple protocol there is no need for third parties verifying fund movement as this is done on a completely peer-to-peer basis.
Despite These Similarities There Are Clear Differences That Set Them Apart
Ethereum (ETH) which was launched in 2015 was founded by Vitalik Butterin, a Russian-Canadian developer. Ethereum expanded on Bitcoin’s capabilities and became the first blockchain project to allow people create and enter into smart contract agreements.
With Ethereum, Bitcoin’s capability which is only suitable for financial transactions were explored extensively by dApps launched on the blockchain. Ether or ETH for short is the cryptocurrency of the Ethereum blockchain.
The Ripple blockchain was created three years before Ethereum in 2012. The cryptographic project was designed, built and launched by a private organization called Ripple Labs located in San Fransisco. The intent of the founders was to design a blockchain protocol that could challenge the existing cross-border payment systems used by banks to remit funds.
Even though Ripple Labs are focusing exclusively on the banking industry, the Ripple blockchain can be used by anyone to receive or send funds. The Ripple coin, XRP, can also be traded on the open market.
Not to be confusing, the technology that supports the network is called “Ripple” while the name of the cryptocurrency that runs on the Ripple blockchain is known as XRP.
Reasons Ethereum (ETH) Won’t Oust Ripple (XPR)
The overall goal of Ripple Labs is to let their technology to service the multi-trillion dollar cross-border payments industry. They already have their xCurrent protocol installed by over 100 different banks even though they have only been in operations for 6years.
So far Ripple have closed deals with some of the largest banks in the world including Santander, Credit Agricole and even the Bank of America, amongst others. While these banks are testing the Ripple protocol, the belief is that they would eventually use it for their inter-bank transfer needs in order not be left behind.
Hence, while Ethereum (ETH) is concentrating on improving their technology, Ripple (XRP) is focus on continually growing the amount of banking partnership they make.
Ethereum (ETH) Has Been Losing ICOs
Smart contracts are most commonly associated with Ethereum (ETH). It allows developers to build hundreds and thousands of application that are advanced on the blockchain network as they operate as programmed with no censorship and third person interference.
Apart from the development of dApps, Ethereum was also known as the most suitable premise for launching of ICOs.
Certainly the deployment of dApps and ICO projects have been a major factor underpinning the strength of the altcoin while it maintains the second position on the table with huge market cap.
But the story seems to have changed for Ethereum (ETH), it has begun losing these ICO projects as people continue to cart away their Eth fund from the network.
Apart from the fact that developers later found out that Ethereum (ETH) is vulnerable for deployment of dApps, the blockchain technology itself also implored developers to stop deploying dApps on its network.
Subsequently, the likes of Tron (TRX) and EOS (EOS) who migrated from the network took advantage of the condition and started evangelizing for deployment of dApps on their network.
On Transaction Speed
While both Ethereum and XRP are based on blockchain technology with different target audiences, when it comes to collating them based on their TPS, Ripple stands out.
Ripple’s performance is way better than Ethereum as it is more scalable and efficiently than Ethereum, it is not just faster at scale, but also cheaper.
Ripple’s XRP Is Gaining More Adoption Than Ever
While Ethereum seems to be moribund when it comes to adoption, Ripple’s XRP, since the official launch of xRapid at the Ripple SWELL 2018, has been placed on a greater adoption pedestal.
The adoption of the cross border remittance tool which uses XRP to transfer fund, xRapid, by big financial institutions gave XRP an upper hand in the adoption realm.
Widening Gap between Ripple’s XRP and Ethereum (ETH)
The margin between Ripple and Ethereum has widened by a large margin even though Ripple has not occupied the 2nd position for long.
As at press time Ripple (XRP) is leading Ethereum (ETH) with over $3billion worth of market cap.
From the market cap battle raging between Ethereum (ETH) and Ripple (XRP) it can be conclusively drawn that Ripple’s XRP is without reservation the rave of the moment with its impressive strides in climbing the ladder of the crypto table.
In so much as it has done well in alleviating the pains of cross border payments, various factors are leading its adoption. Ripple’s technology, media coverage and the expected regulations from financial institutions and government will certainly play positive roles in continually affecting XRP value.