Markets
XRP price fell 0.1% while market cap increased 1.3% in Q1 2024
Data from leading crypto analytics platform Messari shows that XRP’s price decreased by 0.1% quarter-over-quarter (QoQ), while its market cap increased by 1.3% over of the same period.
This was revealed in the latest Messari reportwhich highlighted the performance of XRP in the first quarter of 2024.
XRP price falls 0.1% quarter-on-quarter and rises 14.8% year-over-year
According to Messari, XRP ended the first quarter of 2024 with a unit price of $0.62, a decrease of 0.1% compared to the figure recorded in the last quarter of 2023.
The report found that XRP’s performance in Q1 2024 lagged behind the rest of the crypto market, which saw a whopping 63% gain. Despite a 0.1% quarter-on-quarter decline, XRP price climbed 14.8% year-over-year (YoY) from $0.54 to $0.62.
XRP Market Cap Sees Slight QoQ Gain
The report also provided an overview of XRP’s market capitalization throughout the first quarter of this year. While its price fell by 0.1% quarter-on-quarter, the coin’s circulating market capitalization recorded a slight growth of 1.3% during the same period.
The circulating market capitalization of XRP, which stood at $33.7 billion in Q4 2023, increased by 1.3% in Q1 2024, reaching $34.1 billion. Furthermore, the market capitalization increased by 22.6% year-on-year, reaching $34.1 billion from $27.8 billion recorded at the end of the first quarter of 2023.
Difference between XRP price and market capitalization
Messari attributed the gap between price and circulating market capitalization to the increase in the circulating supply of XRP. At the end of Q1 2024, the circulating supply of XRP increased to 54.9 billion coins, compared to 54.1 billion coins recorded at the end of Q4 2024. This represents an increase of 1.4% .
– Advertisement –
The factor behind the increase in the circulating supply of XRP is the billion Ripple coins. exits of the escrow monthly. It is worth mentioning that Ripple released 3 billion XRP from escrow in the three months of the first quarter of 2024.
As observed in previous months, Ripple typically re-locks up to 800 million XRP of the billion coins released from escrow, leaving the remaining 200 million XRP in circulation. From there, 600 million XRP coins were added to the circulating supply over the three months of Q1 2024.
Total burning exceeds 12 million XRP
Meanwhile, Messari also shed light on the burn rate of XRP. The burn rate has continued to put deflationary pressure on the total supply of XRP, with over 12 million coins burned so far.
Data from XRPScan shows that 12,450,332 (12.45 million) XRP was removed from supply via burns. These coins are obtained through transaction fees on the XRP Ledger (XRPL) and systematically burned.
XRP’s depletion rate has been low due to the low fees required to process transactions on XRP, which cost less than $0.0002 per transaction. Messari predicted that once Ripple releases all XRP from its escrow addresses, the only factor influencing supply will be deflationary burn rate pressure.
At press time, XRP was changing hands at $0.5280, down 16.12% from the figure recorded at the end of the first quarter of 2024. Likewise, currently at $29.36 billion, down 13.9% from the $34.1 billion recorded in the first quarter. quarter 2024.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
-Advertisement-