Over the last few weeks, markets have been trying to figure out exactly where the cryptocurrency space fits into global markets. Take a look at the wider market (mainstream) perception of the space and you’ll be forgiven for thinking that cryptocurrencies are experiencing a global crash, with the inevitable (again, a mainstream public perception as opposed to the perception of those within the sector) bubble bursting happening as we speak.
Take a step back, however, and things aren’t quite so morbid.
Ripple, for example, is currently trading in and around $1.39 a piece. That’s somewhere in the region of a 55% decline from highs (when we exclude the SK impact on prices) and gives the coin a total market capitalization of just shy of $54 million.
That doesn’t look great when you consider action on the smaller time frames, but zoom out and things are very different. The coin is up nearly 900% over the last six weeks or so and the company that underpins it, the eponymous Ripple, has just secured a deal with multinational corporation Moneygram that will see the latter use its tech in its international transfer operations. There’s also an ongoing partnership with Santander that has the latter trialing the same technology in an attempt to smooth out its own cross-currency exchange services.
Then there’s bitcoin.
Again, this coin is down considerably over the last couple of weeks and currently goes for around $11,300, for a market cap in and around $190 billion. Again, this one’s down nearly 50% off highs (or at least it was at recent lows).
But in the background, there’s much activity ongoing that’s going to help bitcoin overcome the issues that have plagued the coin and the network over the last couple of months. Segwit adoption is up, the Lightning network is operational and is being used as we speak as we speak in a number of proof of concept use cases.
By the end of this year, scaling issues will be in the rearview mirror and these coins will be well on their way to an overarching recovery.
Mark our words.
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