Bill Morgan, a prominent attorney on X, has sparked a debate within the cryptocurrency community regarding the accuracy of XRP’s reported market capitalization.
As XRP recently hit a multi-year high of $1.9513, questions have arisen about whether its true market cap is being underreported due to how circulating supply is calculated.
Morgan argues that XRP’s market cap should reflect the approximately 62 billion tokens not locked in escrow rather than the 57.8 billion tokens currently reported as its circulating supply by CoinMarketCap.
There is less than 38 billion XRP left in escrow which means than when XRP reached $1.90 it’s market cap was almost $118 billion not $107 billion which is not being shown on @CoinMarketCap.
If so it has already flipped Solana. pic.twitter.com/oKHLdDwuNY— bill morgan (@Belisarius2020) November 30, 2024
Ripple’s XRP holdings recently dropped below 39%, and at $1.90 per token, Morgan claims the market cap should be closer to $118 billion, a significant increase from the $107 billion figure derived from the listed supply.
In response to critics, Morgan clarified his methodology, “I am counting 62 billion not in escrow multiplied by $1.90. Do the math.” He dismissed the categorization of Ripple’s holdings outside escrow as “undistributed,” arguing that it is a subjective and arbitrary exclusion from the circulating supply.
The debate has drawn mixed reactions. One user countered, “Your maths is off as the circulating supply excludes ‘escrow’ and ‘undistributed.’ The latter belongs to Ripple outside of escrow.” Others reiterated that escrow doesn’t get counted until it has entered the market. Morgan, however, remains firm in his position, emphasizing that his calculations do not include escrowed tokens.
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Has XRP Surpassed Solana?
This issue is particularly relevant given XRP’s recent performance. After being overtaken by Solana in late 2023, XRP’s resurgence to $1.94 has reignited competition between the two assets. Morgan shared a screenshot showing Solana’s market cap at $115 billion at the time of his post, but his recalculations suggest XRP may have already surpassed it.
At the time of press, XRP is trading at $2.42, up over 30% in the past 24 hours. The digital asset has officially flipped Solana and Tether (USDT) to reclaim the third position after years of struggles and price suppressions.
Many experts have predicted that XRP will surpass Ethereum in this cycle. However, Morgan’s post is important as it highlights a significant valuation issue in the market that could hamper digital assets.
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