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Data from top crypto analytics platform Messari shows that the price of XRP decreased 0.1% Quarter-on-Quarter (QoQ) while its market cap rose by 1.3% in the same timeframe.
This was revealed in the latest Messari report, which highlighted XRP’s performance in the first quarter of 2024.
XRP Price Dips 0.1% QoQ and Spikes 14.8% YoY
According to Messari, XRP ended Q1 2024 with a unit price of $0.62, marking a 0.1% decrease from the figure recorded in the last quarter of 2023.
The report revealed that XRP’s performance in Q1 2024 lagged behind the rest of the crypto market, which saw a whopping gain of 63%. Despite registering a decline of 0.1% QoQ, XRP’s price spiked 14.8% Year-over-Year (YoY), soaring from $0.54 to $0.62.
XRP Market Cap Registers Slight Gain QoQ
The report also provided insights into XRP’s market capitalization throughout the first quarter of this year. While its price slumped 0.1% QoQ, the coin’s circulating market capitalization recorded a slight growth of 1.3% in the same timeframe.
XRP’s circulating market cap, which stood at $33.7 billion in Q4 2023, increased to 1.3% in Q1 2024 to $34.1 billion. Also, the market cap increased by 22.6% YoY, soaring to $34.1 billion from the $27.8 billion recorded at the end of Q1 2023.
Discrepancy Between XRP’s Price and Market Cap
Messari attributed the discrepancy between the price and circulating market cap to the surge in XRP’s circulating supply. At the end of Q1 2024, XRP’s circulating supply rose to 54.9 billion from the 54.1 billion coins recorded at the end of Q4 2024. This represents an increase of 1.4%.
The factor behind the surge in XRP’s circulating supply is the 1 billion coins Ripple releases from escrow monthly. It bears mentioning that Ripple unlocked 3 billion XRP from escrow in the three months of Q1 2024.
As observed in previous months, Ripple usually re-locks up to 800 million XRP from 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 Surpasses 12M XRP
Meanwhile, Messari also shed light on the XRP burn rate. The burn rate has continued to apply deflationary pressure on XRP’s total supply, with over 12 million coins burned so far.
Data from XRPScan shows that 12,450,332 (12.45 million) XRP have been removed from the supply via burns. These coins are obtained from transaction fees on the XRP Ledger (XRPL) and systematically burned.
XRP’s burn rate has been low due to the low fees required to process transactions on XRP, which costs less than $0.0002 per transaction. Messari projected that after Ripple releases all XRP from its escrow addresses, the sole factor influencing the supply will be the deflationary pressure from the burn rate.
At press time, XRP was changing hands at $0.5280, marking a decline of 16.12% from the figure recorded at the end of Q1 2024. Similarly, XRP’s market cap currently stands at $29.36 billion, down 13.9% from the $34.1 billion registered in the first quarter of 2024.
