Both Ethereum (ETH) and XRP are the two largest digital currencies in the market and have usually been considered rivals. Although they offer different services to companies and firms, both of them have been trying to be in the 2nd position in the market. Nonetheless, these firms have different applications which is something that investors should take into account.
Ethereum and XRP Are Not Competitors
Ethereum is known for being a platform to deploy decentralized applications (dApps), tokens, smart contracts and run projects such as Initial Coin Offerings (ICOs), networks and more. Meanwhile, Ripple is expanding around the world offering solutions to financial companies that want to improve cross-border payments and transactions.
This shows that they have completely different targets and they want to achieve different goals with their virtual currencies. However, they have a similar goal, they want to leverage blockchain technology and improve current systems.
These two digital assets have also been adopted by several companies and firms all over the world after Bitcoin (BTC). Indeed, they are currently revolutionizing their own industries and economic sectors by offering functional products and services to companies and users.
Firms such as JP Morgan Chase, Ernst & Young and Microsoft are currently experimenting with Ethereum’s technology and using its network to improve the services they are currently offering. JP Morgan Chase has developed Quorum, a permission network based on Ethereum.
Ripple, instead, is offering services to other financial institutions including Santander, BBVA, or other banks around the world. Although XRP is not being used by these institutions, the intention is to increase the number of firms that use XRP in order to source liquidity on demand, reduce costs and improve transactions.
At the moment, Ripple is working with over 200 financial institutions around the world that want to use blockchain technology. The International Monetary Fund (IMF), the EU Commission and the World Bank have already heard about Ripple and how this technology can be used to improve cross-border transactions.
Although many in the crypto space believe that these virtual currencies are competitors, they are targetting completely different industries. Even when they are trying to be in the second position after Bitcoin, these projects are working to make blockchain technology more useful and expand it around the world.
At the time of writing, XRP is being traded around $0.38511 and is the third largest digital currency with a market capitalization of $16.16 billion. Ethereum is the second largest crypto after Bitcoin with a market capitalization of $22.45 billion and a price per coin of $211, according to CoinMarketCap.