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Cryptocurrency

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

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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.

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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.

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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.

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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

CHAINLINK now sixth most valuable crypto, keeps setting new highs

Chainlink presently stands as the sixth most valuable crypto asset valued at $4.65 billion dollars.

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100% of Chainlink (LINK) wallets are now in profit

Chainlink (LINK) price continues to set new records as the DeFi-related token reaches a new all-time high close to the $13.5

Over the last 24-hours, LINK has surged as high as $13.46 on a leading crypto analytic tracker, Coingecko.

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Chainlink presently stands as the sixth most valuable crypto asset valued at $4.65 billion dollars.

Recall that Nairametrics had previously given  an in-depth insight on how Chainlink (LINK), against all odds, joined the top 10 most valuable cryptocurrencies by market capitalization. This followed heightened interest by crypto traders and investors for the digital coin over the last several weeks.

Time to sell?

A renowned crypto trader, Benjamin Blunts, posted on Twitter saying he would rather prefer to wait for LINK’s price to go up a bit higher before considering selling. He said:

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“I actually would be inclined to start looking for shorts soon, however, it seems my entire feed is doing the same. so I will wait for another push higher I think, not really interested in standing in front of the strongest, fastest horse right now.”

Quick fact: Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs. Since blockchains by principle can’t have access to data outside their paths or networks, a defi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.

It should also be noted that about a year ago, Chainlink announced that Google was integrating Chainlink into their approach to smart contract adoption on how users could use Chainlink to connect to BigQuery, one of Google’s most popular cloud services.

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Cryptocurrency

BAND, fastest growing crypto gains 5,620% in 7 months

BAND Protocol is backed by Sequoia Capital and Binance.

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BAND, fastest growing crypto gains 5,620% in 7 months

Band Protocol (BAND), an arch-rival blockchain network to Chainlink (LINK) has just hit an all-time high. Data from Coinmarketcap showed BAND growing from $0.2 on Jan 05, 2020, to $11.24, at the time this report was written, showing an impressive gain of 5,620%, recording a new high.

READ ALSO: ChainLink’s digital coin skyrockets 388% in 130 days, still soaring

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Fundamental analysis of BAND

Despite BAND’s significant re-rating year to date, it is worth noting that its market capitalization is still only 5% of LINK.

This is fair, currently given BAND’s nascent stage but Nairametrics expects the valuation gap will continue to close in the next 12 months as BAND scales.

READ ALSO: Bitcoin surges pass $11,500, BTC wallets activity hit 2.5 year high

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In the coming months, BAND will be announcing a number of partnerships that will show how far along they have come. This will dispel the misinformation that some rivals have tried to spread much better.

The 2nd phase of BAND’s re-rating continues. Given its partnership pipeline and impending exchange listings, I would be disappointed if the BAND’s market capitalization is not at least 10-20% of LINK’s within the next 12 months.

READ MORE: Ripple has released 1 billion XRP; here’s what this means

Quick Fact; BAND Protocol is a cross-chain data oracle network that aggregates and connects real-world data and APIs to smart contracts. Blockchains enable immutable storage and deterministic, verifiable computations — however; they cannot securely access data available outside the blockchain networks.

BAND Protocol is backed by Sequoia Capital and Binance.

Band Protocol enables smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle.

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Cryptocurrency

9,007 crypto ATMs available globally for crypto transfers

Bitcoin offers a flexible, almost instant, and cheaper means of receiving cross border payment.

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There are presently 9007 crypto ATMs and 211,239 non-ATM locations around the world. This means that an individual can now buy or sell crypto assets across 71 countries, according to the cryptocurrency ATM tracking website Coinatmradar.

What you need to know: Nigeria has Africa’s largest population and economy, so its first Bitcoin ATM may be a signal for broader adoption across the continent, as Bitcoin use among Nigerians is gaining steady momentum.

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READ MORE: Shoprite controls 22% of Nigeria’s formal retail, future to be driven by indigenous retailers

Nigeria’s digital economy is on the rise. With the increased poverty level, more individuals are making an entrance into the global  digital economy by providing digital services as freelancers.

However, Nigerians have trouble receiving payments from their foreign clients, as they are not allowed to use even the most famous American based Paypal, and other options like Money Gram and TransferWise are not only expensive and slow but also have inflexible verification systems.

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Bitcoin, however, offers them a flexible, almost instant, and cheaper means of receiving cross border payment after rendering their services to clients and companies.

READ ALSO: Visa to provide easy ways to spend from crypto wallets

The many economic problems in Nigeria, including inflation and the devaluation of the naira, have made the country’s fiat currency a poor store of value, pushing some to store their value in a deflationary currency like Bitcoin, which can protect its owners from excess money printing from central authorities and other uncertainties.

However, Bitcoin ATMs were the focus of a recent crackdown by the U.S. government when a $25 million operation was taken down with 17 machines seized in California. The owner was running the operation without complying with proper AML requirements, the Department of Justice said.

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