Many of the cryptocurrency watchers are now obsessed with market capitalization.
The term market capitalization represents the total value of all of one form of digital currency that is in circulation and is calculated multiplying of the total number of digital coins in circulation with the price of a single currency.
A number of alternative virtual coins are being looked at following a timid beginning to the year by bitcoin – the largest of the cryptocurrencies in terms of market capitalization. Two virtual coins that have drawn the attention of watchers are ethereum and ripple. Both the currencies have started 2018 with strong rallies in their prices. This has left many watchers wondering the next virtual coin that would develop the power to take over bitcoin and to become the biggest cryptocurrency.
Even while both ethereum and ripple have bene fighting for the number two spot in the crypto currency market, their place has been determined often by the price for each. While Ethereum needs a large jump in its prices to be tagged as he largest cryptocurrency, ripple doe not need much of a push in its price in terms of the dollar to obtain that coveted position of becoming the biggest cryptocurrency simply because of the fact that there are many more ripple coins in circulation compared to bitcoin and ethereum.
There are at present 38,739,144,847 ripple coins in circulation at present. And according to CoinMarketCap.com, the total market cap for the coin is at $99.54 billion calculated at Monday’s price of $2.57. In comparison, the market cap of bitcoin was $259.6 billion as on Tuesday.
The price of ripple only needs to go past the $6.80 mark to become the largest crypto currency in terms of market cap. That translates to a rise of 164.5 percent, and when compared to the 36,000 percent rise it had last year, that number appears to be a miniscule.
On the other hand, 96,846,982 ethereum coins are in circulation at t eh present moment. According to CoinMarketCap, the present price of the coin is $1,162. And hence its market cap is $112.6 billion. However, $2700 is the price that ether would need to touch for it to be able to surpass bitcoin's market cap value. And compared to ripple, that rise would need a jump of only 132 percent.
Possessing greater supply compared to bitcoin is something that these two cryptocurrencies have an advantage of. It means that to achieve a higher market capitalization, the rise in value required would be smaller compared to that of bitcoin. With a current circulation of 16,789,425 coin,s bitcoin has a finite supply limit at 21 million.
May of the market watchers are of the opinion that it may not be impossible for coins like Ethereum and ripple to become the biggest cryptocurrency soon enough given the stagnant level of market dominance by bitcoin and the large price enhancements in the prices of the alternative cryptocurrencies.
However, either of the cryptocurrencies would find it hard to surpass bitcoin’s market cap is the virtual currency sees a rise in prices this year.
Despite these preconditions, there are many who visualize ripple outrunning itself because of the fact that this virtual currency works with large institutions and are actually owned by many companies unlike bitcoin. this is an advantage because it shows that ripple is not as decentralized as bitcoin and hence less volatile as a commodity.
(Source:www.cnbc.com)
The term market capitalization represents the total value of all of one form of digital currency that is in circulation and is calculated multiplying of the total number of digital coins in circulation with the price of a single currency.
A number of alternative virtual coins are being looked at following a timid beginning to the year by bitcoin – the largest of the cryptocurrencies in terms of market capitalization. Two virtual coins that have drawn the attention of watchers are ethereum and ripple. Both the currencies have started 2018 with strong rallies in their prices. This has left many watchers wondering the next virtual coin that would develop the power to take over bitcoin and to become the biggest cryptocurrency.
Even while both ethereum and ripple have bene fighting for the number two spot in the crypto currency market, their place has been determined often by the price for each. While Ethereum needs a large jump in its prices to be tagged as he largest cryptocurrency, ripple doe not need much of a push in its price in terms of the dollar to obtain that coveted position of becoming the biggest cryptocurrency simply because of the fact that there are many more ripple coins in circulation compared to bitcoin and ethereum.
There are at present 38,739,144,847 ripple coins in circulation at present. And according to CoinMarketCap.com, the total market cap for the coin is at $99.54 billion calculated at Monday’s price of $2.57. In comparison, the market cap of bitcoin was $259.6 billion as on Tuesday.
The price of ripple only needs to go past the $6.80 mark to become the largest crypto currency in terms of market cap. That translates to a rise of 164.5 percent, and when compared to the 36,000 percent rise it had last year, that number appears to be a miniscule.
On the other hand, 96,846,982 ethereum coins are in circulation at t eh present moment. According to CoinMarketCap, the present price of the coin is $1,162. And hence its market cap is $112.6 billion. However, $2700 is the price that ether would need to touch for it to be able to surpass bitcoin's market cap value. And compared to ripple, that rise would need a jump of only 132 percent.
Possessing greater supply compared to bitcoin is something that these two cryptocurrencies have an advantage of. It means that to achieve a higher market capitalization, the rise in value required would be smaller compared to that of bitcoin. With a current circulation of 16,789,425 coin,s bitcoin has a finite supply limit at 21 million.
May of the market watchers are of the opinion that it may not be impossible for coins like Ethereum and ripple to become the biggest cryptocurrency soon enough given the stagnant level of market dominance by bitcoin and the large price enhancements in the prices of the alternative cryptocurrencies.
However, either of the cryptocurrencies would find it hard to surpass bitcoin’s market cap is the virtual currency sees a rise in prices this year.
Despite these preconditions, there are many who visualize ripple outrunning itself because of the fact that this virtual currency works with large institutions and are actually owned by many companies unlike bitcoin. this is an advantage because it shows that ripple is not as decentralized as bitcoin and hence less volatile as a commodity.
(Source:www.cnbc.com)