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[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!
[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!

Ripple 2018: Price and Telegram Mentions. What’s Driving What?

  • Alexander Goborov
    🤷 Opinions

    Both soars and dives in the price of Ripple lead to its increased mentions on Telegram

Ripple 2018: Price and Telegram Mentions. What’s Driving What?
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Ripple (XRP) has been in the limelight of late, from talks about Ripple wallets to discussions about why this cryptocurrency cannot actually be mined. In spite of currently standing at only about 50 US cents a pop, XRP remains the third most influential cryptocurrency by market capitalization with close to 19 billion US dollars, following Bitcoin and Ethereum. Furthermore, XRP is also among market leaders in terms of its social popularity on Facebook.   

Recently, we have looked at some of the overarching stats pertaining to cryptocurrency mentions on Telegram. Now, having gathered a substantial amount of data that corresponds to the January 1 - October 31 period, i.e. two months shy of a full year, it is time to see how these affect Ripple, and, more specifically, how XRP price and its Telegram mentions may be linked:

XRP 2018

In the graph above, the horizontal axis represents time, and the vertical axis is a relative scale that corresponds both to number of Telegram mentions (in blue) and XRP price (in red). Evidently, what can be seen, for the most part, is a picture of the two lines following each other’s trajectories, with the emerging pattern being a clear correlation of the two variables. The remaining question is which variable is independent and which is dependent, i.e. which one determines the movement of its counterpart.

Given that multiple factors go into price formation, it is far more likely that the changes in XRP value are determined irrespective of most activity on Telegram, though not necessarily entirely without it at all times. In contrast, one could successfully argue that changes in XRP price often fuel XRP activity on Telegram. Interestingly, this correlation is both positive and negative: when the price of Ripple goes up, so do Ripple mentions on Telegram; similarly, when the price of Ripple goes down, the number of Ripple mentions on Telegram also increases.

Since Telegram is thought to be one of the safest messaging apps around, it is plausible to assume that XRP owners use Telegram to discuss trade scenarios with various potential buyers and sellers or seek investment advice from other XRP owners. For those who wonder why the blue line crosses the red at one point, the suggested explanation is as follows: this very sharp spike in XRP mentions on Telegram is likely determined by the fact that Ripple saw a sudden increase in its price in the autumn after a relatively long period of summer stability. No doubt, this was seen by many as a big opportunity to transact business in quite some time, which subsequently resulted in the number of XRP mentions on Telegram going through the roof.

Stay tuned for more and be sure to check out this week’s crypto report by our expert trader, Vaido Veek, based in Estonia.

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Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values

  • Jack Thomas
    🤷 Opinions

    Vitalik Buterin, the co founder of Ethereum, has come out and said that while the price of a coin is not that important, it is still a good thing for ETH to rise. He made mention of security, and the ecosystem development being better when the price of Ethereum is higher.

Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values
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Contents

Ethereum is in a key phase of its development, having pioneered the smart contract blockchain. It is now in a position to take things further and grow its ecosystem as it looks to, for one, switch its algorithm from proof-of-work to proof-of-stake.

This development of the ecosystem will no doubt have an effect on the price of the Ether token, but more than that, Ethereum’s co-founder Vitalik Buterin has said that a higher Ethereum price is good for the development of the Ethereum ecosystem, as well as adds a higher level of security.

Essentially, it is a double-edged sword as the price of Ethereum is expected to rise when any cryptocurrency project is doing well, but the long term price prediction is then expected to rise, as Buterin adds it will help improve the project further.

Buterin’s beliefs

Buterin made his comments during an interview for Laura Shin’s crypto-focused “Unchained”.

In response to Shin’s question as to whether protocol designers and project leaders should be focusing on the question of a cryptocurrency’s price, Buterin spoke of how the Ethereum project had explicitly downplayed the importance of the asset’s value earlier on in Ethereum’s history.

“In part, it was counter-signaling to distinguish ourselves from other crypto projects that do pumping and lambo-ing way too much. But it was also about minimizing legal risk by basically trying to make the project seem more distant from something that would be covered by financial regulation.”

However, he has now gone on to explain that in today’s context, the price does in fact have a part to play.

“I can tell you what things are clearly important about why the price being higher rather than lower is good. One of them is obviously security. If the price is zero, then the network can’t be secure. That’s true in proof-of-work and proof-of-stake,” he added.

Long-term price prediction

With this being said, it makes sense that the price of Ethereum is thus being aimed at long-term growth. The project itself is working on improving its own worth and value as a blockchain project, and in that, the price of Ether should also naturally rise.

And, with a focus being on the importance of a higher price adding to the value of a blockchain project, this could even compound the growth of Ether's price in the long run.

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