Will Ripple Emerge as the Best Cryptocurrency Investment in 2022? – Analytics Insight
According to predictions, Ripple could even touch US$2 by the end of 2022
Blockchain technology acts as the underlying power behind many famous cryptocurrencies. It stores transaction data in blocks and loops it for security. Unlike the top cryptocurrencies that are powered by blockchain technology, Ripple functions on a disruptive model called ‘hash tree’. Similar to blockchain technology, XRP uses this futuristic method to record transactions. However, Ripple has been on a downward trend since last month. After hitting a record high of US$1.33 in November, XRP has encountered a steady slide. Therefore, we explore if Ripple has the potential to emerge as the best cryptocurrency investment in 2022.
In the modern digital ecosystem, cryptocurrencies have evolved to become the epicenter of financial dealings. As digital tokens gain popularity, more people are initiating to try their hand at the decentralized model. While blockchain is the biggest player in the ground, do investors take a moment to look at other underlying models? Yes, they did. That is how Ripple became the best cryptocurrency investment in the digital sphere. Ripple runs its platform, RippleNet, which allows anyone to send and exchange cryptocurrencies or make cross-border transactions. Since its inception, RippleNet has emerged as a direct competitor to the SWIFT (Society for Worldwide Interbank Financial Telecommunications) banking system. At the time of writing, XRP was at US$0.8195 with a market capitalization of US$38.72 billion. With an annual growth of 256%, Ripple has managed to occupy the eighth position in the market. However, its price is expected to grow further in 2022 as enthusiasts predict that the Ripple vs SEC case will come to an end next year.
The Journey of Ripple
Ripple is a fintech company that generally offers global payment solutions through its patented payment network known as ‘RippleNet’. RippleNet is built on a consensus XRP ledger that is both futuristic and open source. Ripple platform promotes the best cryptocurrency called ‘XRP’. Although Ripple uses both XRP ledger and XRP coins, they run independently off the company. Besides, XRP doesn’t use the famous Proof of Work or Proof of Stake models. Instead, it functions solely on a protocol consensus algorithm that validates accounts and transfers payments through independent nodes.
XRP coins hit mainstream adoption in 2017 and 2018. While Bitcoin reached new highs in 2017, it eventually shed some light on the next aligned altcoins. Fortunately, Ripple happened to be one of them. However, after the bull run in 2017, XRP price plummeted dramatically and almost hit a 97% loss from its all-time high. Fortunately, over time, the cryptocurrency gained its ground and managed to enter the top 10 list.