Cardano’s ADA overtakes XRP in the ranking of the most capitalized cryptocurrencies

ADA overtakes XRP and once again becomes the 6th capitalization of cryptocurrencies

After the recent days rally in the crypto market, the Cardano (ADA) asset has once again become the sixth largest cryptocurrency by market capitalization, having overtaken Ripple (XRP). ADA has seen its price increase by 16% in the last 24 hours, while XRP has only increased by around 1%.

According to data from CoinGecko, the market cap of ADA is $20.6 billion currently, while the market cap of XRP stands at $20.3 billion. The two capitalizations are therefore very close.

Whale trades on ADA have soared since January after the cryptocurrency’s price plunged to a low of $0.40 earlier this year. The whales apparently bought the dip in anticipation of an upcoming hard fork that will improve network performance. This hard fork, known as the Vasil hard fork, is expected to bring a “massive improvement” to the network.

It was also without counting on the addition by Coinbase of the staking on the Cardano asset last March which allowed the price of the cryptocurrency to increase.

πŸ‘‰ Learn more about Cardano’s ADA

The performance of ADA and XRP

But in general, the performance of the ADA since the beginning of the year is down sharply (-55%) like the vast majority of cryptocurrencies. The market is generally trending downward and has seen several massive corrections this year. It is also directly correlated with the index of technology stocks in the USA (NASDAQ) which suffered a sharp drop after its excellent rally during the Covid.

That being said, this performance should be put into perspective if we compare it to the sharp declines of certain shares in the crypto sector on the financial markets.

ADA price vs XRP price in USD

At the same time, the price of XRP was affected by one of Ripple’s co-founders, Jed McCalebwhich has sold over 450 million tokens year-to-date and still has over 220 million in its wallet.

McCaleb reportedly started working on Ripple as early as 2011, and was part of the founding team when the firm was launched in 2013. Although he left in 2014 to work on Stellar (XLM), he received 8 billion of XRP tokens for his role in the development and founding of OpenCoin, which was later renamed Ripple.

The entrepreneur receives the funds on a fixed schedule and clearly indicated via XRP Talka forum for XRP investors and supporters, that it plans to sell the funds it receives.

XRP is also experiencing the negative effectss of a lawsuit filed by the Securities and Exchange Commission (SEC), the US regulator, against Ripple. The SEC accuses the company and two of its executives having ” raised over $1.3 billion through a continuous, unregistered digital asset securities offering. Β»

Experts in the cryptocurrency industry predict that if the lawsuit ends positively, the price of XRP could reach $2.55 by the end of the year, up to $3.61 by the end by 2025, and $4.98 by the end of 2030. On the other hand, if Ripple loses its lawsuit, the value of XRP could drop to $0.68. Either a price higher than the current price of the cryptocurrency.

πŸ‘‰ More information on this subject: Ripple (XRP) lawsuit against the SEC: towards a resolution in 2022?

Source: CoinGecko – Image: Google Finance

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About the Author : Timothy Bernines

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Passionate about the world of investment, cryptocurrencies have been attracting my attention for a few years now. Having a major interest in the fields of new technologies and Web 3, this is why I naturally wanted to write articles on Cryptoast, in order to contribute to the democratization of this universe in society.
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