Ripple (XRP), now the third digital currency by capitalization, which started 2017 at $0.0065, has surpassed the dollar for the first time after the support of Japanese and Korean banks. Bitcoin (BTC) has been exchanged for $20,000 in full fever for cryptocurrency, after starting the year below $1,000. But this spectacular rebound is short compared to the growth experienced by another lesser-known digital currency, the Ripple (XRP): so far in 2017 its value has increased by more than 17,000%.
With a total value of 46B dollars, the Ripple is currently the third cryptocurrency by market capitalization, after Bitcoin and Ethereum, leaving behind Bitcoin cash. Each of these digital currencies quoted yesterday around $1.10, while at the beginning of the year barely reached 0.0065, according to the portal Coinmarketcap.
This Thursday, the currency experienced a strong rebound after a large group of Asian banks have backed their technology. The Japan Bank Consortium, a coalition of 60 Japanese banks, and the Korean entities Woori Bank and Shinhan Bank have announced the launch of a pilot project based on ripple technology for cross-border payments. “The use of RippleNet to send cross-border payments reinforces that financial institutions are ready to provide a modern payment experience,” says Emi Yoshikawa, director of associations of ripple.
The announcement fueled interest in this digital currency, triggering its volume of transactions. “Asians are going crazy over the Ripple,” says Alexey Ivanov, CEO and co-founder of cryptocurrency and blockchain investment fund manager Polynom Crypto Capital. The ripple yesterday exceeded the dollar barrier for the first time.
It was born five years ago and its main characteristic is that it allows transactions in real time, because thanks to its consensus algorithm the verifications can be done instantaneously. Its technology connects banks, payment providers and digital assets through the RippleNet system, in order to provide a direct and intermediary payment experience. In this way, it allows entities to reduce their operating costs, which is why many see it as the future of the banking system.