What is Behind Ripple’s Latest Price Surge? Interpretation from Blockchain Professionals and Early Developers

Ripple’s XRP, a digital token first issued back in 2013, surged 160% this past Monday in stark contrast to current bear trend of the digital currency market …

Ripple’s XRP, a digital token first issued back in 2013, surged 160% this past Monday in stark contrast to current bear trend of the digital currency market. Those who failed to purchase Ripple earlier were met with deep frustration from this missed opportunity. The sharp rise in Ripple’s price caused its market cap to exceed $25 billion, surpassing Ethereum and taking the second-place spot for highest circulating value among digital currencies.

So why is Ripple displaying such strength? Many attribute it to the following recent news items:

  • The settlement service of Ripple, xRapid, has made significant progress and will be commercialized “in the next month or so”;
  • PNC, a top 10 US mainstream bank, announced that it will use RippleNet to process international payments for its clients;
  • Well-known video sites, YouTube and Twitch, will enable users to distribute rewards to the network anchors with XRP.

To examine these items in greater detail, we interviewed 16 professionals together with Wang Yanxi, one of the members of the 499 Beauty Group. Below are some of the opinions of the optimists:

Sun Yuchen, founder of TRON, Xu Yingkai, founder of BlockVC, and Wang Feng, founder of Mars Finance: Congratulations!

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– What is your opinion on the sharp rise of Ripple? Between Ripple and Ethereum, which one will be more valuable in the future?
– The rise of XRP is attributed to the recognition of the Ripple protocol by PNC Bank, the mainstream US financial institution, and the upcoming Swell conference. The former US President Bill Clinton will be present, which indicates that blockchain is being recognized by mainstream American society and this is a symbolic event for the industry. Before establishing TRON, I was the chief representative of Ripple Greater China from 2014 to 2016, and I was also a shareholder of Ripple. So, I am very familiar with the interests of mainstream financial institutions and firmly believe that global financial institutions will eventually embrace the trend of blockchain!

2.png– What’s your opinion on the sharp rise of Ripple?
– Ripple announced a cooperation with Platio on the 18th, which will enable the xVia technology developed by Ripple to realize cross-border payment. Currently, the platform has obtained the permission of the British FCA and the EU authorities. Benefiting from this news, XRP managed to take the lead in the bounce following the drop and successfully stimulated the market as a whole. This triggered purchases among general traders leading to a large increase over the past several days.
– Thank you, Mr. Xu.

3.png– What is your opinion on the sharp rise of Ripple over Ethereum? Between Ripple and Ethereum, which one will be more valuable in the future?
– After more than five years of testing, XRP surpassed ETH to become the cryptocurrency with the second largest market value.
– Between Ripple and Ethereum, which one will be more valuable in the future? I’m not sure.
– I’m optimistic about both.

Ji Hongqiang from Lianyi Capital: The payment application of Ripple is practical.

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– What is your opinion on the sharp rise of Ripple?
– Ripple has done a good job recently as a payment channel.
– Between Ripple and Ethereum, which one will be more valuable in the future?
– Ripple.
– I have basically only concerned myself with Ripple over the past year.
– ETH basically has little value.
– What’s the reason that ETH has no value?
– It is not worthless, just the value space is smaller than that of Ripple.
– Although it’s a constant currency.

Opinions of technical analysts:

Zhao Dong, founder of Dfund, and Roy Li, founder of Ruffchain: The transaction volume is not large enough and the rising trend is not sustainable.

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– What is your opinion on the sharp rise of Ripple over Ethereum? Between Ripple and Ethereum, which one will be more valuable in the future?
– In terms of trading volume, which one is larger, XRP or ETH?
– The trading volume is most important.
– For example, if I buy one share out of one hundred million shares of your company for one yuan, does it mean that your company is worth 100 million?
– So the best point of view is that the trading volume determines its value.
– Of course, the premise is that the trading volume is real.
– Very few people use XRP.
– Ok, thank you for your support.

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– Useless.
– But Visa has invested supported institutions.
– Haha! You are very funny, Roy.
– Between Ripple and Ethereum, which one will be more valuable in the future?
– Ethereum.

Li Quan, Dfund partner: This is good for Ripple in the short term, but it still cannot be compared to Ethereum.

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– Between Ripple and Ethereum, which one will be more valuable in the future?
Ethereum will be more valuable.
– Ripple’s rebound should still be achievable.
– Ripple’s positives are not as important; it is the result of the large volume of shares held. – – In the long term, Ethereum will surpass Ripple again as a main carrier of smart contracts and ICO offerings. It is more important than Ripple. From a technical point of view, the activity of Ethereum is far higher than that of Ripple in terms of community or on-chain trading, and Ethereum is experiencing a difficult time. Once it is over, the future will be brighter than Ripple’s. Of course, I am a Bitcoin believer, so I advise everyone to buy Bitcoin.
– Thank you for your support.

Sun Zeyu, Genesis Capital: Ripple has an application scenario, but after cash settlement in the bull market, it will fall back.

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– What is your opinion on the sharp rise of Ripple over Ethereum?
– They have won this latest rebound.
– But this is really a short-term trend.
– It will be hard to continue.
– The sharp rise of Ripple is due to the cooperation with YouTube, generally I think it is difficult to continue the trend after this news, but this time I am optimistic about Ripple. Ripple has applications. But in reality, few people use this application.

Feng Chi, Genesis Capital: Ripple, please stop your recent performance.

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– Feng Chi leader, what is your opinion on the sharp rise of Ripple over Ethereum? Between – Ripple and Ethereum, which one will be more valuable in the future?
This recent price increase is just a discrepancy in short-term performance, and Ethereum and Ripple aim to solve different problems, so it is not reasonable to compare them.
– Understood.

Roman Abramov, Blockchain IL partner: Don’t talk with me about individual coins, I just admire those who have a strong technical background.

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Brandon Synth, early developer of Bitcoin and founder of SKYcoin: It’s all an illusion… we’re in a bear market. The return of the bull market will depend on when the securities traders and banks launch Bitcoin products.

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Jiang Jinze, editor-in-chief of BABI Finance: Ripple had the formula for creating positive market movements through hype and excitement, so it is difficult to have much confidence in this lasting.

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– Hello, BABI Finance Editor, what is your opinion on the sharp rise of Ripple over Ethereum?
– Ripple is one of the tokens with the highest amount of “good” news. YouTube’s acceptance of Ripple does not mean that someone will use Ripple to issue rewards. The largest adult video site recently started accepting TRX payments, but it has no effect on the relevant tokens.
– Of course, there is also an explanation that Ripple has fallen too much during the bear market, more than 80%, so even if it is rising now, it is still far from the entry price of many people, so there is less sell pressure.
– Between Ripple and Ethereum, which one will be more valuable in the future?
– Ethereum and Ripple coin models are completely different. It’s hard to say, and Ripple itself is not a blockchain.

Dr. Omer Ozden, Chairman of RockTree Lex, the legal blockchain platform: Ripple has some new application scenarios and Ethereum’s major use case, financing through the ERC20 standard, is shrinking. Fortunately, Ethereum has a wide distribution and smart developers who will likely think of new use cases for the platform.

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– What is your opinion on the sharp rise of Ripple? Between Ripple and Ethereum, which one will be more valuable in the future?

 

Opinions from the influencers:

Zheng Di, founder of Qidian Consulting: The circulation size is small and the good news is yet to be confirmed. Both R3 and Ripple have the motivation to pull up the market.

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– I think the sharp rise of Ripple can be attributed to the good news that Xrapid is approaching commercial use. Xrapid needs XRP, which is more imaginative than Xcurrent, which does not need XRP. With the good news, the price rises easily as 55 billion XRP are held by Ripple (assuming 1 billion tokens unlocked are not sold each month) and tens of billions are held by several founders. As such, only about one billion are circulating in the market. Ripple is also supported by institutions like SBI, which could also contribute to the rise. In fact, XRP has been showing strong characteristics since last year, and the total market value surpassed Bitcoin for quite some time in the fourth quarter.
– In addition, we also noticed that some of the good news has yet to be verified. For example, Coil, based on Ripple’s advertising platform, said that four platforms including YouTube will accept XRP payments, but we found that the Coil official website only showed that the technology is compatible with the four platforms, and YouTube has not accepted XRP payment. So whether these messages are intentionally released, it still needs to be verified.
– Third, R3 sued Ripple last year and asked the company to fulfill the R3’s right to purchase 5 billion XRP for $0.0085. After a few months, XRP skyrocketed. The option was worth of tens of billions of dollars. R3 and Ripple reached a compromise this month. It seemed that – Ripple made a big concession, and acknowledged the validity of the R3 option, and then XRP spiked again. The option is valued at $2.8 billion at current prices. The two big rises were later in the lawsuit timeline between Ripple and R3, which got many people thinking.
– The main future income of Ripple will come from cashing out 55 billion XRP. The wealth of several founders of Ripple also depends on an XRP cash-out, and R3 has no additional property in addition to the $2.8 billion option. Their interests are also highly dependent on an XRP cash-out. So, the price of XRP is very important to Ripple, its founder, and R3.
– In fact, there are also buyers like SBI which buy many coins. God knows how many they have purchased.
– So, if you subtract the tokens held by SBI, Ripple’s actual circulation is smaller than what I have calculated.

Eric Meltzer, co-founder of Primitive Fund: The rise of Ripple reflects that the market is not mature.

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– My quote: Ripple is not a cryptocurrency. It is a centralized token system. It should not be compared with BTC and QQ token. Ripple has some products that help bank transfer settlements, which is interesting, but these products have nothing to do with XRP. Its current market value can only reflect that the token community is still very immature.
– Thank you for your support.

Dovey Wan, well known blockchain influencer also expressed similar views in Zhishi Xingqiu, but she also pointed out that bankers are powerful, so the short sale without careful consideration is not advised:

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– The memory of the “leak” really lasts only three seconds, so they should pay the “IQ tax”. PNC uses Ripple’s interledger, which has nothing to do with XRP (at least for now). Ripple is a for-profit company, which is not equal to $XRP, an encrypted digital currency.
– Dovey Wan: Shorting XRP is very risky. Do not fall into the value investment trap. 1. Understand the proportion of liquidity. 2. Understand how many tokens are held by Ripple. 3. Understand the cooperation with various big brands, celebrities, and banks. 4. The retail investors are attached to the idea of an imaginary bear market.
– Young: Ripple’s rise is also a ray of sunshine in this bear market.

The views of the 16 market professionals above should give readers a more comprehensive understanding of Ripple’s latest surge. We find that the majority remain cautious about the future of XRP. Regardless of whether the news is true, the circulating supply and volume remain low, so all investors should take caution in opening a position at a higher price.

 

This program is jointly produced by BABI Finance, 499Block, and Alpaca Blockchain.

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