I'm interested to know why Ripple's value and market cap are increasing?

This is a 'utility system' that seems to counter price appreciation models/expectations (at least in my mind), yet XRP is appreciating...?

I'm confused by how this can happen?

Disclosure. I'm a litecoin guy (possibly part of the problem), and I don't mind the recent XRP events (only curious about what I am seeing here). ;)


It comes down to XRP's actual or perceived utility, then speculating on XRP's future; most seem to be bullish so there's price appreciation. Since XRP will act as a connecting joint between ALL currency pairs within the Ripple network, XRP will maintain its usefulness and in fact probably become more useful as time goes on and new bridges are made across previously isolated markets. XRP will help to lubricate the engine of the Ripple protocol. As long as the protocol is being used more each day and is "healthy", which it currently is, the price of XRP "should" increase along with it – just as a motor needs lubricating oil to maintain it.

There's also a chance it might become a sort of "reserve" currency in the future, assuming success of the Ripple protocol.

  • It's interesting. Picking up Bitcoin and Litecoin feels like baseball card collecting. XRP feels like a financial instrument. I was reading that each transaction kills off a little XRP as the transaction fee which is an interesting idea. While not an immediately impactful, can induce scarcity over time. There is also the idea of funding a tiny amount of XRP for each new account created. This creates some interesting value paradoxes as well as a ledger spamming deterrent. Fascinating stuff! Nov 18 '14 at 13:18

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.