All through the 2018 bear run, money has largely been flowing into bitcoin (BTC), and stable coins. Bitcoin (BTC) has been the coin of choice for those seeking some level of exposure to the markets while minimizing the risks that come with this market. This explains why its dominance in the market has risen, and most coins lost over 90% of their value. The reason why bitcoin has come to be associated with stability is its decentralized and trustless nature. This has over time created the perception that Bitcoin is a safer investment, even though it may not be the most technically advanced crypto investment in the market today.
However, recent events may change this perception going into the future. The hash war between Craig Wright and Roger Ver has put into question the whole idea that bitcoin is actually fully decentralized. Its weaknesses have been exposed, considering that a few individuals can threaten its value stability.
With the stability perception about bitcoin gone, money flowing into crypto is likely to look more into utility as a source of security. This may explain why XRP (XRP) is slowly gaining in strength, even as bitcoin hangs precariously on the $5500 support. It’s an indicator that XRP is looking better as an investment, for its utility.
XRP has made major inroads in the finance industry as ripple looks poised to take over the market from SWIFT. Recently, Brad Garlinghouse stated that they are signing 2 production contracts a week. This means that by 2019, a significant chunk of the banking industry will be using XRapid, and by extension, XRP as a liquidity tool. This is a major utility for XRP, one that could see its value rise significantly going into 2019. With bitcoin (BTC) showing signs of weakness, the market could see more investors troop into XRP, betting on the partnerships that ripple has made so far.
This perception of XRP as a strong and growth-oriented coin is also reinforced by the fact that it has closed the gap with Ethereum and cemented its place as the 2nd largest crypto. This is the first time that XRP has overtaken Ether and held on to its wins. This, when combined with all the positive hype around XRP may contribute to even more volumes flowing into XRP in the future, thereby adding to its demand. It’s also interesting to note that the market cap gap between XRP and bitcoin has been shrinking.
If current conditions persist, XRP will close that gap even further and this could create unprecedented excitement around it. The hype it would create could create massive demand for XRP both at the retail and institutional level and easily push it to overtake Bitcoin (BTC) to take the top spot. XRP hitting a market cap of $100 million or more in the short-term is not that unrealistic, when its exponential rate of adoption is factored in. It could be a surprising end of year for XRP, one that many had not anticipated could ever come true in the near future. An end of year where XRP flippens BTC.