24 hours ago, Ripple was sitting in third place just behind Ethereum and Bitcoin. As of now, Ripple is standing up and proud over Ethereum with a $25.9 Billion market cap. What, Why and How?
These are the questions floating through every hodler right now, and after our fair bit of research, we have the answers to those questions.
To all the non-hodlers out there, Ripple is a real-time currency exchange and remittance network, built upon a distributed open source protocol. Their popularity has risen over the last few years as a large number of banks have started using their protocol.
1. Launch of xRapid nears
xRapid, is a digital asset that offers on-demand liquidity allowing markets to enable real-time payments with ridiculously low costs. It is presently the most reliable liquidity option to serve cross-border transactions.
Sagar Sarbhai, the head of government and regulatory relations of Asia Pacific and the Middle East, Ripple, recently announced that the product is to be in production by the next month or so. It was after this announcement, where the Ripple price started escalating and is considered to be one of the primary reasons for the surge.
2. A growth in cryptocurrency market cap of $26 billion
The entire market had a huge bull run today – growing by 13% on average and growing the market cap by 26 billion to 226 billion USD.
Market capitalization is the market value of a cryptocurrency’s outstanding coins. In other words, if you were to add up the price of all of the circulating coins of a Cryptocurrency, you would find the market cap.
Market Cap = Coin Price x Coin Supply
The market cap is the amount of investment currently in a Cryptocurrency.
Coin Price = Market Cap / Coin Supply
3. BTC dominance dropping from 55.42% to 51.4%
BTC dominance is the percentage of the total cryptocurrency market capitalization that Bitcoin takes up at any given point in time. What exactly does this mean?
The percentage of bitcoin dominance can give credible insight into the cryptocurrency market. And knowing how to take advantage of this has the potential to earn you big profits.
BTC Dominance Meaning
To break down the meaning of BTC dominance a little further, we need to first understand what market capitalization is.
What is Bitcoin Dominance In Relation To Total Market Capitalization?
We can calculate the total value or total market capitalization of Bitcoin. The percentage of Bitcoin dominance in relation to the cryptocurrency market as a whole can be calculated as well. This is done by taking the total market capitalization of the entire market and dividing it by the market capitalization of Bitcoin.
This calculation can be used to see the dominance of any cryptocurrency or altcoin in the market. As of now, we care about Bitcoin dominance.
“Bitcoin dominance index“, simply means the BTC dominance percentage. It’s important to learn how BTC dominance affects the market and what it means when it starts to increase or decrease.
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