Ripple has displaced Bitcoin Cash from the number three position in the cryptocurrencies table. The Ripple price has now hit $1.82 with a market capitalization of over $70 billion, as recorded at Coinmarketcap.
For the second time in one week, the Altcoin has made a breathtaking new all-time high.
The Ripple Action
According to the Wall Street Journal, Ripple is now more valuable than Uber and Didi Chuxing, two of the most significant technology startups globally.
Uber’s $70 billion market valuation declined by 20%, after twenty-four hours after Japan’s Softbank purchased a 20% stake in Uber, pulling Uber’s market valuation down to 50 billion.
The price of Ripple has witnessed an energetic surge since banks and Fintech firms in Japan and Korea announced some weeks ago, that they were testing the usefulness of Ripple in the virtual funds’ transfer.
As per CCN, Ophir Gottlieb, CEO at Capital Market Labs, a member of Thomson Reuters First call Institutional research, said that Ripple’s recent price surge is easily justifiable because of its adoption and integration by financial institutions in Asia. He also noted that Ripple surpassing the market valuation of Uber is not a surprise because Ripple has much more markets to cover than Uber. In his words:
“Ripple’s total addressable market is $5 trillion a day in trans-country currency exchange (currently on SWIFT), or over a quadrillion dollars a year. Ripple the technology (not necessary the digital currency) is a much bigger idea than Uber.”
Experts are of the opinion that Ripple’s new bullish trend is not because Ripple has an addressable market, stressing the point that Ripple has not processed up to a fraction of the global finance and currency exchange transaction volumes. While Uber, on the other hand, has been doing decent business in the car sharing market over the years. Furthermore, if the market valuation of any cryptocurrency is based on its total number of its addressable market, then Bitcoin’s market valuation should have amounted to trillions of dollars by now. Since it is focused on replacing traditional financial institutions, the gold industry, and the fiat money ecosystem because the market valuation of those mentioned industries is worth several trillion.
Ripple Creates Strategic Partnerships
As stated earlier, Ripple has established a solid partnership with up to 90 banks, financial institutions, and Fintech firms in the Asian continent. These companies are using Ripple for processing vast amounts of financial transactions for high profile clients. This is a crucial force in the recent Ripple rally.
In addition to the Ripple-banks partnership, the SBI Ripple team has announced its partnership with highly reputable Japanese credit cards processors like Credit Saison, JCB, Sumitomo Mitsui Card, and more. This move is in a bid to ensure hitch free operations and fraud reduction as reported by CCN.
If everything continues to work well for the Ripple team, it is expected that the Ripple price will go higher shortly.