Ethereum (Ether) has solidified its position as the second most valuable cryptocurrency in the market as it overtook Ripple (XRP) by a staggering $60 billion within a five-day period.
ince January 4, the market valuation of Ripple decreased from $148 billion to $73 billion, falling by nearly 2-fold in a single week. On the contrary, the market valuation of Ethereum surged from $85 billion to $135 billion, recording yet another 15 percent increase in value today, on January 10.
The recent surge in the price of Ethereum can be largely attributed to the sell-off of XRP, which was likely triggered by the market’s concerns over the sudden spike in the market valuation of Ripple. The harsh criticism of Ripple by analysts such as ConsenSys entrepreneur-in-residence Ryan Selkis could also have led to the decline in confidence towards Ripple.
On December 29, Selkis noted that the majority of Ripple’s partner banks are not actually utilizing the Ripple network to process billions of dollars on a regular basis. Given that the transaction volume of Ripple and its network of banks can be only two factors that could possibly justify its market cap, the market’s interest in Ripple decreased in the short-term.