Opinion: Messari, a startup data research company, recently published a report that claims that the market cap of XRP, the second largest cryptocurrency should be further down the line, maybe even fifth rank or lower.
The report claims that there is a lot of XRP that is restricted and doesn’t contribute to the market cap. Moreover, the report puts the actual circulating supply of XRP at 21.821 billion.
The report excludes the XRP held by Jed McCaleb, Foundation assets, Chris Larsen, and even XRP II, which, in total amounts to approximately 19.21 billion.
Furthermore, the market cap of XRP, as per the Messari reports, is overstated by a total of 46.83%. Comparing this with the current price from CoinMarketCap puts XRP at a market cap of $6.584 billion i.e., fourth position, just between Ethereum and EOS [at the time of writing the price of XRP was at $0.301734, EOS was at fourth position with a market cap of $2.17 billion].
As per the data from the XRP Charts, the total supply of XRP multiplied by the current price of XRP, puts the market cap of XRP at approximately $31 billion.
Furthermore, the report fails to consider, the market cap from Korean markets that are inherently excluded, from CoinMarketCap metrics which devalues the asset more than it should.
In addition, Forbes Crypto Markets defines market cap as:
“Traditionally as a financial term, market capitalization is total supply multiplied by the price.”
@devor_junior, a Twitter user commented:
” Quote from above:
‘Traditionally as a financial term, market capitalization is TOTAL SUPPLY multiplied by the price.’
XRP total supply = 99,991,699,770.49
So actually it’s being underreported almost everywhere.”
Another Twitter user @mikenardolillo commented:
“Not to mention even the CS of xrp is 99.991B as stated by Forbes even the uncirculated supply fluctuates frequently and is just cryptographic not legal binding.”
As per Messari’s research, Bitcoin, the world’s largest cryptocurrency would also face the same ramifications if “restricted” assets are to be excluded.
Anthony Pompliano recently tweeted that a total of 26,000 BTC were lost by an exchange as they were no longer able to access them and this would mean that the market cap of Bitcoin would be less.
Furthermore, the $1 million Bitcoins held in escrow by Craig Wright has to be excluded from the market cap of Bitcoin as well.