Connect with us
deals book
Advertisement
Polaris bank
Advertisement
Oando
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Binance
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
Access bank
Advertisement
app

Cryptocurrency

This cryptocurrency has just hit a market capitalization of $100 billion

Published

on

Cryptocurrency markets were thrown into a frenzy this week as ripple (XRP) became the second cryptocurrency to hit the $100 billion mark. Ripple currently has a market capitalization of $139 billion. Market leader bitcoin has a market cap of over $243 billion. Market capitalization is the total number of circulating coins in supply multiplied by the uit price of a coin. Ripple has a circulating supply of 38.7 billion coins and is currently trading at $3.45.

Factors behind the rise in ripple’s price

There has been a huge increase in Ripple trades on South Korean cryptocurrency exchanges. Ripple also trades at a slight premium on South Korean exchanges, which also encourages arbitrage. While 12% may seem a small margin, cryptocurrency exchanges on average charge less than 0.5% per transaction, making arbitrage quite profitable. Arbitrage is the act of buying a product in a cheap market and selling it in a more expensive market where it is more expensive.

Why this is big news

Hitting a $100 billion market capitalization, raises the prospects that ripple could one day knock bitcoin from the number one spot. Bitcoin’s dominance in cryptocurrency markets has gradually reduced from over 60% to less than 40%.

The rise of ripple also shows that cryptocurrency markets are fast maturing. Analysts and investors prior to this, have maintained the opinion that cryptocurrencies with a large volume of coins in issue are unlikely to top market capitalization. Ripple currently has 38 billion coins in issue. Ultimately 100 billion coins will be issued.

The coin also represents the antithesis of what cryptocurrencies stand for, by being centrallized.  This has led to some members of the cryptocurrency community calling the  coin a psuedo cryptocurrency.

What is ripple ?

Ripple (XRP) founded in 2012, is both a cryptocurrency and a payment network. Unlike other cryptocurrencies, ripple is spear headed by a consortium of financial institutions.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.You can contact him via [email protected]

Cryptocurrency

Dogecoin investor loses $12 million on Binance as Doge suffers violent dump

Recent price actions reveal $DOGE lost as much as 25%, dropping as low as $.50 amid record selling pressures.

Published

on

The fast-rising crypto asset, Dogecoin suffered record losses in the early hours of Sunday despite Elon Musk’s debut on the long-awaited Saturday Night Live which surprisingly led to a violent dump.

At the time of drafting this report the dog meme coin traded at $0.564505 on the FTX Exchange with a daily trading volume of $31 billion. Dogecoin is down 21.34% for the day.

Recent price actions reveal $DOGE lost as much as 25%, dropping as low as $.50 amid record selling pressures.

The largest single liquidation order happened on Binance-DOGE value $12.07 million as over $270 million positions in the Dogecoin assets vanished into thin air.

READ: Dogecoin up 168%, more valuable than Polkadot, Cardano

READ: Altcoin season? Ether, ADA, Doge and others hit all-time highs

Supporters of the fast-growing crypto were earlier hopeful that Elon Musk might offer some strong bullish bias in favour of Dogecoin but that was not to be. Although the Tesla CEO has, many times via social media, stated that Dogecoin remained his favourite crypto, he recently warned fans to invest in the asset with great caution.

Crypto pundits have often frowned at the inflationary properties of Dogecoin considering that it is printed every minute of every day, giving it a potentially infinite supply. The implication of this is that the crypto asset’s unlimited supply could, over time,  impact negatively on its price.

Continue Reading

Cryptocurrency

How Nigeria’s ethnic diversity is boosting the crypto market

The crypto market has facilitated more economic collaboration and cooperation among Nigeria’s geopolitical regions.

Published

on

How Nigeria’s ethnic diversity is boosting the crypto market

Africa’s biggest crypto market, Nigeria keeps gaining momentum in spite of its exclusion from Nigeria’s financial ecosystem. This reflects dwindling faith in Nigeria’s traditional financial asset classes.

Adding credence to such bias is data retrieved from Paxful. The global leading Peer to Peer trading platform reveals Africa’s biggest economy and home to over 200 million people has now become its biggest market with 1.5 million users. In just four months, about $1.5 billion worth of Bitcoin exchanged hands.

In addition, data retrieved from Google revealed that Nigeria is the only country with a perfect score in regards to its interest in the flagship crypto.

Using local geographical metrics, Delta State has the highest level of interest in the flagship crypto on a state level, followed by Anambra, Bayelsa, Ondo, and Ekiti. This points to Bitcoin’s stronghold in southern Nigeria.

READ: Dogecoin breaks new high, far more valuable than Nigerian Stock Market

However, the same can’t be said of the fast-rising crypto, Dogecoin, which was created in 2013 as a joke, to mock the crypto-mania at that time. Data reveals Dogecoin has its strongest trend in the North-central and some Eastern parts of Nigeria such as Ebonyi, Plateau, Imo, Enugu, Niger, and Nasarawa.

Surprisingly, Borno state, despite being ravaged by conflict showed a high interest in the dog meme coin.

Anambra, Ebonyi, Bayelsa, Imo, and Cross river have the strongest interests in Ethereum that’s already breaching record highs amid the ongoing bullish run, in play at the crypto-verse.

READ: Unknown whale moves $440 million worth of Bitcoin as institutional buying drops

Surprisingly, Lagos, Nigeria’s busiest economic hub on the state level, misses out of the top 10 in any of the rankings despite its strong fintech presence coupled with the fact that it is host to most of Nigeria’s crypto platforms like Buycoins Africa, Quidax, Bittle, and Bundle Africa.

This data reveals how much the crypto market thrives on Nigeria’s ethnic diversity, taking into account that the country, which is Africa’s biggest fintech community and home to Africa’s only two fintech unicorns – Interswitch and Flutterwave, will benefit from policies that encourage diversification and long-term inclusive growth.

READ: Unknown whale moves $272 million worth of Bitcoin

Jaiz bank

In a country prone to stringent foreign exchange policy and expensive transaction fees compared to other emerging markets, the crypto industry is thriving and already creating jobs at record levels via the Nigerian crypto start-ups, which are facilitating millions of dollars worth of transactions daily and fostering a new wave of crypto-based solutions.

Bottom Line: It is important to note that the crypto market has facilitated more economic collaboration and cooperation among Nigeria’s geopolitical regions further boosting the prospects for a strong political and economic entity that many young Nigerians desperately desire.

Continue Reading

  





Nairametrics | Company Earnings

Access our Live Feed portal for the latest company earnings as they drop.