thecryptobasic.com
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.
