It has been a roller coaster 24 hours for Ripple. Following a meteoric rally, prices crashed 30% from the previous day and more than 40% from all-time highs, shaving tens of billions off XRP’s market cap.
XRP/USD Price Levels
At its lowest point Monday, Ripple’s XRP token hit $1.92 a unit, according to Barchart.com. Over the next 12 hours, the cryptocurrency would rebound to $2.41 for a daily loss of roughly 10%.
Even with Monday’s reversal, Ripple has added 15% over the last five days.
The coin’s sharp drop combined with Ethereum’s recent gains pushed XRP back down to the no. 3 spot in terms of market cap. At current price levels, Ripple is capitalized at $95.5 billion, according to CoinMarketCap.
Nearly $3.4 billion worth of XRP tokens changed hands on Monday, with South Korean exchanges driving more than 40% of trade volume. Bithumb processed more than 30% of Ripple transactions via the XRP-won currency pair. The same cross on Coinone accounted for more than 7% of all transactions.
Price Trajectory Remains Firm
It took Ripple until December to become one of the world’s most talked about cryptocurrencies. Over the next month, it would cement itself as 2017’s best performing digital asset, beating out the likes of bitcoin, Ethereum and Litecoin. Last week, prices peaked at $3.84 during one of the biggest-ever rallies for altcoins.
Even with its latest correction, Ripple could very well become the world’s biggest cryptocurrency. At current price levels, XRP would only need to get to $7 for its market capitalization to exceed bitcoin’s. This assume’s the token’s current circulating supply of roughly 38.739 billion. Meanwhile, bitcoin’s dominance has fallen to record lows, with roughly one-third of the $750 billion crypto market cap allocated to the original blockchain.
Unlike bitcoin and privacy-focused altcoins, Ripple works within the financial system, which may give it more room to grow. The Ripple company, which owns the majority of XRP tokens, has announced several high-profile partnerships with financial institutions aimed at solving liquidity challenges and boosting cross-border flows.
The latest drop in value accompanied a broader correction in the market after several altcoins raced to new all-time highs. Some analysts have described the slide as inevitable given XRP’s explosive growth in the first week of 2018.
The correction may have also benefited South Korean traders, who routinely pay a 50% or higher premium on XRP tokens. At last check, the cryptocurrency was priced at a 53% premium on Bithumb.