After another busy day of trading, it is interesting to make a price comparison between the three biggest cryptocurrencies. Bitcoin has grabbed all the headlines over the last few years, but increasingly both Ethereum and Ripple are beginning to garner attention. Ethereum has become the second largest cryptocurrency by value, while many believe that Ripple has huge breakout potential, even though its price doesn’t currently compare with Bitcoin.
Underlining the potential of Ethereum is the fact that it has once more reached all-time highs over the last 24 hours. Admittedly, there was then a pull back in the value of Ethereum, with the cryptocurrency ultimately falling into negative territory. Nonetheless, its price had broken as high as $1,375 earlier in the day, having only broke the four-figure value for the first time over the weekend.
The rally in Ethereum indicates that price comparison in the crypto niche is becoming increasingly unpredictable. Although the Ethereum price hasn’t remotely approached the Bitcoin price as of yet, it is becoming a competitor to the leading crypto brand.
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After an incredible escalation in the Bitcoin price, it has fallen back a little recently, trading at around $14,000. Ripple has also experienced a challenging couple of days, with its great gains to just over a value of $3 being wiped out almost completely.
Price comparison and prediction in this market is always challenging, as a multitude of factors impact on the Bitcoin, Ethereum and Ripple price. For example, recent falls in the value of these currencies has been attributed to an overnight announcement that the Australian Tax Office is establishing a task force with the intention of monitoring cryptocurrency transactions.
Business Insider reports that this new initiative “aims to ensure cryptocurrency investors are paying the correct amount of tax” and a “team of specialists across tax law, technology, banking and finance will devise strategies to follow the money on gains made from investment in digital currency.” A spokesman for the Australian Tax Office indicated that it is currently “consulting with key stakeholders who have expressed an interest in tax issues relating to cryptocurrencies”.
It is also notable that CoinMarketCap.com has recently decided to remove South Korean exchanges from its data sources. This is particularly significant, as the site is considered the most important for cryptocurrency pricing and price comparison data. A major fall followed in this particular news, and although this has largely passed, it is still probably having some impact on the markets and trading conditions.
This has been particularly reflected in the Bitcoin price, with the leading cryptocurrency having receded significantly from its high of almost $20,000. Coindesk’s Bitcoin Price Index has fallen nearly 20 percent in the last 72 hours, although the leading crypto has since staged a minor rally, with the current price touching the $14,000 level once more.
The market capitalization of Bitcoin has slumped over 7 percent in the last twenty four hours alone, with the correction in the current price representing a 30 percent fall from record highs set in December last year.
Data source OnChainFX indicates the world’s largest cryptocurrency by market capitalization has depreciated by 7.18 percent in the last 24 hours. Bitcoin (BTC) is also down 30 percent from the record high of $20,000 set in December. It seems that the current passing of trading for that coming is bearish, which is to be expected considering it’s 20-fold gains made in 2017.
The Ripple price has also taken a bit of a kicking in the last 24 hours, with the cryptocurrency plunging to a value less than $2 . CoinMarketCap notes that the value of Ripple has more than halved, after it set record highs of $3.84 just last week.
This 40 percent recession in the Ripple price is somewhat predictable, though, considering the embryonic nature of the cryptocurrency. Nonetheless, it’s fall back in price has enabled the rival Ethereum to reclaim the crown of being the second biggest cryptocurrency in market cap terms.
It seems that decisions related to the South Korean markets have impacted particularly severely on the Ripple price, with the chief cryptographer of the currency, David Schwartz, blaming panic selling on the sudden price fall.“Coinmarketcap’s decision to exclude Korean prices from the displayed XRP price made the price appear to drop, likely triggering some panic selling. Look closely at the data and don’t be mislead [sic],” Schwartz tweeted.
While price comparison between Ripple and either Bitcoin or Ethereum is almost inappropriate considering the gulf in value, the long-term potential of Ripple is believed to be massive. Ripple has succeeded where Bitcoin in particular has failed, by attracting the financial hierarchy to say positive things about the system involved in its blockchain. And this is expected to result in a big upside for the cryptocurrency in the near future, making price comparison between Ripple and the other platforms more relevant.
Whether or not Ripple can reach the highs of Bitcoin is debatable, but price comparison between these two platforms is more feasible. Ethereum is closing on at the incredible value of Bitcoin, although the market leader is still worth over 10 times the value of Ethereum. but with the second biggest crypto platform performing well in trading, it seems likely that the Ethereum price could go higher still in the coming weeks.
While it has been a challenging time for the biggest cryptocurrencies due to market conditions, it is believed that this could be a temporary problem. Greg Dwyer, head of business development at cryptocurrency derivatives exchange BitMex, suggest that excluding the South Korean markets has led to a complete misvaluation of the cryptocurrency niche.
”Every crypto is priced at a 30 percent premium in South Korea. By removing that, it looks like the market cap fell by 30 percent and so people rushed to sell because they’re not sure what’s happening,” Dwyer commented.
So the future of price comparison in the crypto sector could still be a bullish proposition.