New Data from leading crypto analytics platform Messari has revealed that XRP experienced a slight decrease of 0.1% in its price during the first quarter of 2024, while its market capitalization saw a modest rise of 1.3% in the same period.
According to the latest Messari report, XRP ended Q1 2024 with a unit price of $0.62, marking a 0.1% decline compared to the previous quarter in 2023.
The report also highlighted that XRP’s performance in Q1 2024 fell behind the rest of the crypto market, which saw a massive gain of 63%. However, despite the QoQ decrease, XRP’s price increased by 14.8% YoY, surging from $0.54 to $0.62.
In terms of market capitalization, XRP’s circulating market cap experienced a slight growth of 1.3% in Q1 2024, despite the 0.1% QoQ price slump. The market cap increased from $33.7 billion in Q4 2023 to $34.1 billion in Q1 2024. Additionally, the market cap saw a YoY increase of 22.6%, rising from $27.8 billion at the end of Q1 2023.
Messari attributed the discrepancy between XRP’s price and circulating market cap to the surge in its circulating supply. The circulating supply of XRP rose from 54.1 billion coins at the end of Q4 2023 to 54.9 billion coins at the end of Q1 2024, representing a 1.4% increase.
This increase in circulating supply is a result of Ripple releasing 1 billion XRP coins from escrow monthly. It is worth noting that during Q1 2024, Ripple unlocked 3 billion XRP from escrow.
Ripple typically re-locks up to 800 million XRP from the 1 billion coins released from escrow, leaving the remaining 200 million XRP in circulation. As a result, 600 million XRP coins were added to the circulating supply during Q1 2024.
Furthermore, Messari shed light on the burn rate of XRP, which has continued to put deflationary pressure on its total supply. Over 12 million XRP coins have been burned so far, according to data from XRPScan. These coins are obtained from transaction fees on the XRP Ledger (XRPL) and systematically burned.
The burn rate of XRP has been relatively low due to the low fees required for processing transactions on the XRP network, which costs less than $0.0002 per transaction. Messari projected that once Ripple releases all XRP from its escrow addresses, the primary factor influencing the supply will be the deflationary pressure from the burn rate.
At the time of writing, XRP is trading at $0.5280, reflecting a 16.12% decline from the figure recorded at the end of Q1 2024. Additionally, 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.
XRP Daily Chart
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