Considering a lot of cryptocurrencies are going down this week, some are having a worse time than others. Ethereum, for example, saw a whopping 35% drop over the past few days. Considering its growth throughout 2017, a retrace was bound to happen. Ripple’s XRP asset, on the other hand “only” lost 8% in the same period. It seems to be a matter of having real-life use cases.
It makes very little sense to compare Ethereum and Ripple, since both ecosystems are extremely different from one another. More specifically, Ethereum is designed for technical developers, yet ETH has no real-world use case for most people on this planet. Ripple, on the other hand, is being used by various banks all over the world. As is their native XRP token, which has an actual real-world use case.
Ripple Has More use Cases Than Ethereum Right now
To put this into perspective, Ethereum is a great ecosystem. It offers innovative technological features, and can certainly help put blockchain technology on the map. Unfortunately, it is also mostly “hot air” in the eyes of the mainstream public. Ethereum’s ETH tokens have no inherent value for most mainstream consumers, as they will not sue the technology anytime soon. Moreover, it appears ETH is mainly used for ICO funding right now and the creation of new tokens. Other than that, very few people use Ether to purchase things, even though it was never designed to compete with Bitcoin in this regard.
Helps to have real-world use cases–#XRP only down 8% compared to Ethereum’s 35% this week https://t.co/0PuQpRYM48
— Ripple (@Ripple) June 27, 2017
Ripple has real life use cases, that much is evident. The technology is being used by hundreds of banks around the world. That number will only continue to grow as more time progresses. Although not all of these banks use XRP, it is evident the digital asset is less subject to speculation compared to Ether. Everyone involved in Ripple and XRP wants to maintain a stable price, whereas Ether is merely a speculative tool right now, and that will not come to change anytime soon.
As a result, Ethereum can lose 25-35% of its value in a few days, as it seems to be in sync with Bitcoin and other cryptocurrencies in this regard. XRP, on the other hand, took a small loss as well, but it is only 8%. Moreover, it seems to recover its losses a lot sooner compared to Ethereum and cryptocurrencies. It is evident XRP is designed to be embraced by the mainstream, even if that means banks and other financial institutions will be the main parties using it. Ripple definitely has a competitive edge over Ethereum in this regard, but that doesn’t mean one should ignore Ether either.
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