A recent report from Messari, a leading crypto analytics platform, has revealed the performance of XRP in the first quarter of 2024. According to the report, XRP experienced a slight decrease in price, while its market cap saw a modest increase.
In terms of price, XRP ended Q1 2024 with a unit price of $0.62, marking a 0.1% decrease compared to the previous quarter. This performance lagged behind the overall crypto market, which saw a significant gain of 63% during the same period. However, when comparing year-over-year figures, XRP’s price actually spiked by 14.8%, rising from $0.54 to $0.62.
While the price saw a slight dip, XRP’s market capitalization recorded a modest gain. The circulating market cap increased by 1.3% from $33.7 billion in Q4 2023 to $34.1 billion in Q1 2024. Furthermore, when comparing year-over-year figures, the market cap saw a notable increase of 22.6%, rising from $27.8 billion in Q1 2023 to $34.1 billion in Q1 2024.
The report also highlighted a discrepancy between XRP’s price and market cap, which was attributed to the surge in circulating supply. During Q1 2024, the circulating supply of XRP rose by 1.4% from 54.1 billion coins to 54.9 billion coins. This increase can be attributed to the monthly release of 1 billion coins by Ripple from escrow. In the three months of Q1 2024 alone, Ripple unlocked 3 billion XRP from escrow, with 600 million XRP being added to the circulating supply.
Additionally, the report discussed the burn rate of XRP, which has been applying deflationary pressure on the total supply. Over 12 million XRP coins have been burned so far, obtained from transaction fees on the XRP Ledger (XRPL). The low fees required to process transactions on XRP have resulted in a relatively low burn rate, but it is expected to become the primary factor influencing the supply once all XRP is released from escrow.
As of now, XRP is trading at $0.5280, representing a decline of 16.12% from the end of Q1 2024. The market cap currently stands at $29.36 billion, down 13.9% from the first quarter of 2024.
It’s important to note that this article is for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research before making any investment decisions.