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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-on-quarter (QoQ), while its market capitalization increased by 1.3% over the same period.
This was revealed in the last Messari reportwhich highlighted XRP’s performance in the first quarter of 2024.
XRP Price Drops 0.1% QoQ, Rises 14.8% YoY
According to Messari, XRP ended the first quarter of 2024 with a unit price of US$0.62, marking a drop of 0.1% compared to the value recorded in the last quarter of 2023.
The report revealed that XRP’s performance in the first quarter of 2024 lagged the rest of the crypto market, which saw an impressive 63% gain. Despite recording a 0.1% decline QoQ, the price of XRP increased 14.8% YoY (YoY) from $0.54 to $0.62.
XRP Market Cap Records Slight Quarterly Gain
The report also provided insights into XRP’s market capitalization during the first quarter of this year. Although its price fell 0.1% in the quarter, the coin’s circulating market capitalization registered a slight growth of 1.3% in the same period.
XRP’s circulating market capitalization, which was $33.7 billion in Q4 2023, increased by 1.3% in Q1 2024 to $34.1 billion. Furthermore, market capitalization increased by 22.6% year-on-year, rising to $34.1 billion, compared to $27.8 billion at the end of the first quarter of 2023.
Discrepancy between the price and market cap of XRP
Messari attributed the discrepancy between the price and circulating market value to the increase in the circulating supply of XRP. At the end of the first quarter of 2024, the circulating supply of XRP increased to 54.9 billion from the 54.1 billion coins recorded at the end of the fourth quarter of 2024. This represents an increase of 1.4%.
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The factor behind the increase in the circulating supply of XRP is the 1 billion coin Ripple releases deposit monthly. It is worth mentioning that Ripple unlocked 3 billion XRP in escrow in the three months of Q1 2024.
As noted in previous months, Ripple typically re-locks up to 800 million XRP of the 1 billion coins released from escrow, leaving the remaining 200 million XRP in circulation. From this, 600 million XRP coins were added to the circulating supply in the three months of Q1 2024.
Total burn exceeds 12 million XRP
Meanwhile, Messari also clarified XRP’s burn rate. The burn rate has continued to apply 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 were removed from supply via burns. These coins are obtained from transaction fees on the XRP Ledger (XRPL) and burned systematically.
The consumption rate of XRP has been low due to the low fees required to process transactions in XRP, which costs less than $0.0002 per transaction. Messari projected that after Ripple releases all XRP from its escrow addresses, the only factor that will influence supply will be deflationary pressure from the consumption rate.
At press time, XRP was changing hands at $0.5280, marking a 16.12% decline from its value recorded at the end of Q1 2024. Likewise, XRP’s market cap is currently at US$29.36 billion, a drop of 13.9% compared to the US$34.1 billion recorded in the first quarter of 2024.
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