One of the main factors considered when classifying cryptocurrencies is the market capitalization and a lot of watchers are constantly keeping an eye on it. Technically, it refers to the value a digital currency has in circulation, being calculated by multiplying the supply of the coin by the price per unit. And Ripple is doing very good from this point of view!
Until now, Bitcoin, the largest cryptocurrency of the moment, had a relatively quiet 2018, as reported by CNBC, so many investors started looking for alternative coins.
Both Ethereum and Ripple have been doing great this month, so people are wondering if they have what it takes in order to surpass Bitcoin. The two coins have been fighting for the second spot on the market, but it looks like Ripple is the one with the most potential so go on the first place.
It doesn’t need to grow that much!
What’s very interesting is that Ripple’s price doesn’t need to grow very much, compared to its current rate, in order to become the biggest. This is due to the fact that there are way more coins in circulation than Bitcoin and Ethereum.
To be more specific, we’re talking about 38,739,144,847 digital coins. At today’s price of $2.57, the market cap is $99.54 billion, while Bitcoin’s cap is at $259.6 billion.
Less than $7 and we’ll have a new leader
For Ripple to become the world’s top cryptocurrency, it needs to get to around $6.80, but this isn’t something that easy. Reaching this price would require a rise of 164.5 percent, which is very small, looking back at the 36,000 percent rose from 2017. However, we don’t see this happening anytime soon!
As for Ethereum, it has a total circulating supply of $96,846,982, trading at $1.162 at this very moment, while the market cap is $112,6 billion. In order for ETH to reach the first position, it needs to get at $2,700, which is a 132 percent rise.
Finally, let’s not forget that Bitcoin also has a lot of potential, so if it sees a surge in price soon, it will become very hard for any other cryptocurrency to surpass it.