Ripple’s XRP stays unaffected by trading volume manipulations news
|- Messari report shows that true XRP’s value is smaller than it seems.
- XRP/USD is hovering under critical $0.3200.
The market value of Ripple’s XRP coin may be massively overstated, according to the latest research compiled by crypto data startup Messari.
According to the data provided on CoinMarketCap an on similar sources, there are about 41 billion XRP coins in circulation. However, Messari experts argue that the real figure is twice as small as about 19 billion coins may be illiquid.
For example, 6.7 billion XRP held by Ripple co-founder Jed McCaleb is a subject of dispute. Also, about 6 billion are pledged to a nonprofit entity called RippleWorks. Messari found out that 2.5 billion coins held by RippleWorks are subject to daily trading restrictions.
All in all, Messari believes that XRP’s market cap is overstated by more than $6 billion, which might be a conservative estimate.
“In reality, this estimate may prove to be conservative, as they believe XRP trading volumes which have consistently fallen well below that of EOS and Litecoin, two cryptoassets whose current referenced market caps are a mere 17% and 15% of XRP’s, respectively. Also, we believe the actual amount of ‘restricted’ XRP in distributions to investors, banking partners, and a team member may be significantly higher than our initial estimates reflect.”
The company also draws attention to the fact, that Ripple does not provide the methodology used to calculate XRP’s trading volume.
At the time of writing, XRP/USD is changing hands at $0.3165, mostly unchanged on a day-over-day. The coin slipped under $0,3200 handle, though the downside momentum failed to gain traction so far. A move above the critical level will improve the technical picture.
XRP/USD, 1-day chart
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