XRP Shows No Signs of Price Bubble as Ripple Tech Beats Bitcoin and Ethereum
2025-07-18 20:02:17
Main Idea
A study reveals that XRP shows no signs of a price bubble, unlike Bitcoin and Ethereum, attributing its stability to Ripple's superior technology and consensus mechanism.
Key Points
1. A study by Fry (2018) applied a rational bubble model to cryptocurrencies, finding bubble behavior in Bitcoin and Ethereum but not in XRP.
2. XRP's stability is attributed to Ripple's Unique Node List (UNL) consensus mechanism, requiring 40% node agreement to initiate validation and 80% to record a block.
3. Ripple's technology resolves the Byzantine Generals problem, enhancing transaction efficiency and contributing to XRP's stable valuation.
4. The study highlights XRP's distinct stability profile, with its value dynamics less influenced by speculative bubbles compared to Bitcoin and Ethereum.
5. The findings suggest that Ripple's technological superiority over Bitcoin and Ethereum is a key factor in XRP's lack of bubble characteristics.
Description
Crypto researcher SMQKE shared an excerpt from an academic source highlighting a notable distinction between XRP and other leading cryptocurrencies such as Bitcoin and Ethereum. According to the content, a study conducted by Fry (2018) applied a rational bubble model to various cryptocurrencies, including Bitcoin, Ethereum, and XRP. The model revealed that both Bitcoin and Ethereum exhibited signs of bubble behavior during the observed period, while XRP did not show any characteristics typically...
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