The fourth most valuable crypto by market value – XRP, has experienced huge transactions in its market lately on the bias that large investors are keenly rushing in to have a stake in the supposedly undervalued crypto when compared to bitcoin and Ethereum.
Data from Whale Alert revealed an unknown identity transferred 89,999,980 XRP worth 22,515,762 USD from an unknown wallet to Coinbase.
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? ? 89,999,980 #XRP (22,515,762 USD) transferred from unknown wallet to #Coinbase
— Whale Alert (@whale_alert) November 9, 2020
- At the time of this report, XRP traded at $0.248352 with a daily trading volume of $2 billion.
- XRP price is down -2.3% in the last 24 hours.
- It has a circulating supply of 45 billion coins and a max supply of 100 billion coins.
READ: Large entity moves $75 million worth of Ethereum
What you should know
Ripple (XRP) plays dual roles – as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
Unlike its crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered and Barclays for international transactions worldwide.
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What this means
Economic historian, Barry Eichengreen, recently explained that cryptos should not just be considered for speculative reasons, as leading crypto assets have shown characteristics of being tangible assets.
According to him, “I don’t think that thinking about crypto as speculative investments, is really a long-term viable business model. Speculative investments have come and gone throughout history. Tulips came as a speculative investment and they went. Digital assets that provide actual tangible services like cross-border payments are the ones that are likely to have legs.”
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Barry went on to explain why cryptos have become the new digital gold.
“Gold doesn’t really have any intrinsic value. People [believe] it will hold its value because other people value it. There is, from that point-of-view, a parallel with cryptocurrencies. People pay actual U.S. dollars for it because they think other people will value it and pay actual U.S. dollars for it,” he said.
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