Ripple (XRP), a startup cryptocurrency rival to Bitcoin and Ethereum, has increased its value multiple times since the beginning of the year. In fact, all cryptocurrencies have increased their value since January 1st, but Ethereum and Ripple seem to be gaining market share and growing much faster than Bitcoin.

The rapid growth of cryptocurrencies

Since the beginning of the year, the demand and value of cryptocurrencies have been increasing very rapidly. Bitcoin has more than doubled its value passing $2300, and Ethereum has increased its value more than 20 times passing $200.

According to prominent financial analysts, the main reason for the sudden rise in demand and value of cryptocurrencies is that there is a lot of uncertainty surrounding traditional currencies that make investors turn their attention to alternative investments.

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An additional reason is that many Asian countries like Japan have changed their policies regarding digital currencies by making it much easier for people to transact.

The rapid growth of Ripple

Ripple, which is a newcomer block chain, was founded only five years ago. They created a digital real-time payments system similar to Bitcoin. The start-up company is the creator and major holder of the cryptocurrency Ripple (XRP).

According to CNBC News, Ripple (XRP) has increased its value by about 4000% since the beginning of the year. There are about 100 billion Ripple (XRP) in the market, and each has a value of approximately $0.26. This means that the total value of Ripple (XRP) is approximately 26 billion dollars. CNBC reports that this makes the cryptocurrency second only to Bitcoin whose value is about 41 billion dollars.

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However, Ripple (XRP), just like Ethereum, seems to be growing much faster than Bitcoin. This has led many investors to turn their attention to both Ripple and Ethereum.

This is indeed a very impressive growth rate for both the company and its #Digital Currency. Due to the sudden influx of investments on its cryptocurrency, Ripple has become the fifth most valuable United States start-up company after just five years.

Financial analysts’ warning

Many financial analysts have expressed concerns that the rapid rise in the value of cryptocurrencies may be a bubble. That is why they advise investors to invest with caution. They base their concerns on the assumption that investors’ attention will return to traditional currencies as soon as the global economy bounces back and there is no longer so much uncertainty surrounding them. #Start Up Company