XRP Inflation Rate Highest Among the Leading Cryptos

The XRP lost its position as the third biggest cryptocurrency by market capitalization. Furthermore, the inflation rate of the coin has increased within the financial year.

According to the latest data by crypto analytics Messari, the XRP inflation rate grew by up to 20%. The current XRP inflation of a circulating supply is five times bigger compared to the world’s dominant cryptocurrency Bitcoin.

As Messari’s researcher Florent Moulin shared in his Twitter message, the inflation of XRP is the highest among the leading cryptocurrency assets. It is five times higher compared to Bitcoin’s circulating supply inflation rate before the third halving.

Furthermore, the analytic stated that only 30% of XRP maximum supply has been distributed yet. Meanwhile, compared to 87.5% of Bitcoin’s at the same time.

The inflation rate in circulating supply is a factor that can have a crucial influence on the price of a cryptocurrency. When the undistributed coins are moved into circulating supply, they become available to be bought on the market. This usually lowers the price of the asset, as demand does not necessarily match with the increased volume of coins being sold.

Ripple, the company behind XRP cryptocurrency, together with its founders controls about 75% of all XRP tokens. The company has been making constant sales of coins within the last year. As stated by Kyle Samani, a co-founder of crypto hedge fund Multicoin Capital, in his interview with Bloomberg, Ripple has become more aggressive in their selling. According to him:

The company has been steadily increasing their sales of XRP over the previous three quarters, likely inflicting downward price pressure on XRP.

The sell-offs might be largely related to the uncertainty with the regulatory institutions due to the ongoing investigation of XRP token sales as the unregistered securities. If the company is found to have violated the law, the XRP trade might be restricted or even stopped.

The company however has been thriving in making new global partnerships and gaining institutional interest. Ripple has made big steps into the cross-border payments market. Partnerships with the National Bank of Egypt and leading US-Mexico remittance service providers settled the company as one of the prominent players in the cross-border payments industry. Furthermore, the company’s global payments network grew to more than 300 customers worldwide last year, with payout capabilities in over 70 countries.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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