Dipo Olowookere
There are a lot of factors that determine your choice of currency when trading. For instance, if you want to know how to trade with Ripple, you must know the essential factors that affect the price of Ripple.
Key Factors Affecting the Ripple Price
Just like every other currency, the price of ripple is influenced by demand and supply, yet there are a couple of things that make ripple different from other currencies. These unique factors influence how participants respond to demand and supply.
Ripple Supply
Ripple Coin is pre-minted with 100 million of it at the time of launching; unlike Bitcoin, that can be mined. There are over 45 million Ripple coins in supply. The remaining fraction of the launched coin is released periodically based on the decision of the company executives. The target for investors and traders is to track the release and circulation of ripple coins to take advantage of it.
Adoption
The adoption of ripple coins by notable financial institutions significantly impacts its demand. Nobody wants to stake their money on just any investment. The adoption of ripple coins by reputable institutions endorses its authenticity and creates an environment for making informed decisions for traders.
The Crypto Market
The Crypto Market decides the fate of most currencies. The direction of the majority in the crypto market impacts its rise and fall in price. Once a currency is perceived to have potential in the market, it appreciates. This is applicable to ripple coins.
Competition
The Crypto World is a world of competition. The price of any currency is influenced by:
- its circumference of usage;
- adoption by financial institutions.
The ripple cost will continue to rise as long as it maintains the top tier based on the abovementioned factors.
Exchange Listing
A coin can be potentially promising, but it cannot be appreciated until it achieves a listing on a notable exchange. Achieving a listing is one of the essential things for any coin. On the other hand, delisting can wreck the price of any coin. Ripple coin thrives on this advantage as well.
