Ripple and its digital asset XRP have been making headlines a lot this year, mainly due to various achievements.
The San Francisco-based company managed to bag a lot of new and important partnerships and its solutions for cross-border payments have been recognized by more and more institutions.
According to the report, the largest digital assets such as BTC and ETH show the highest positive correlations or “clusters.”
A positive correlation means that the prices of digital assets are usually tending to follow the same market trends.
These cryptos’ prices are moving together, and such a thing leads to the fact that their investors are exposed to similar risks and gains as well.
XRP, the best diversifier digital asset
Ripple’s XRP was also mentioned in the report, and it shows less correlation with BTC and ETH.
The crypto was called “the best diversifier among digital assets with a market cap above $3 billion.”
Some other previous reports that have been detailing the risks of diversifying digital assets have been showing that spreading risk across altcoins, XRP included, might not be the safest strategy, especially considering Bitcoin’s typical market behavior.
Ripple’s efforts and products, recognized
Back in February, the Ripple community celebrated the fact the San-Francisco based company has been included alongside Coinbase, and Circle in the Forbes Fintech 2019 list.
Other essential names that made it into the list are Gemini, Bitfury and more besides the names that we already mentioned above.
The online magazine finds Ripple a more obvious choice to be included in such a prestigious list considering that they have really proven to be one of the most hardworking crypto companies back in 2018.
One of Ripple’s main aims is to overcome SWIFT and eliminate the flaws that have been plaguing the traditional payments system.