The XRP community has been stirred by a noticeable increase in the circulating supply of cryptocurrency over the past few weeks. Xaif.03 (@xaif_03), a technical analyst and blockchain developer, shared the news on X.
Between September 1 and September 20, approximately 190 million XRP were added to the circulating supply. This has raised questions and concerns among holders and analysts regarding the implications for the digital asset’s price and overall market dynamics.
Xaif.03 attached 3 images showing XRP’s circulating supply at $56.25 billion, $56.33 billion, and $56.43 billion. Using the way back machine and CoinMarketCap tells a similar story. XRP had a circulating supply of $56.25 billion on September 1. It maintained this until September 7, when it rose to $56.329 billion.
Following this, XRP’s circulating supply rose to $56.386 billion between September 13 and 15. It was still $56.329 billion by September 12, but the way back machine failed to capture the website on September 13 and 14. By September 15, it had hit $56.386.
Xaif.03 suggested that Ripple board members might be selling off large quantities of the coin to prevent its price from rising significantly, particularly when the broader cryptocurrency market is experiencing upward trends.
According to Xaif.03, 40 million units were sold between September 19 and 20. On September 20, CoinMarketCap showed the digital asset’s circulating supply at $56.434 billion, a notable increase from $56.386 on September 19.
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Implications for XRP’s Market Dynamics
Selloff concerns are not new in the XRP ecosystem. Adding such a significant number of coins to the circulating supply has renewed these concerns. However, there are other potential problems.
An increase in supply without a corresponding rise in demand typically leads to price suppression. This phenomenon could explain the relatively stagnant price movement despite broader market rallies.
As of the latest data, XRP remains one of the top cryptocurrencies by market cap, standing at approximately $34.1 billion as its price surged 4.6% over the past 24 hours to $0.605, finally crossing the $0.6 level again.
What Does this Mean for XRP?
The circulating supply increase also raised centralization concerns, further bolstered by a recent report showing that very few wallets perform over half of the transactions on the XRP Ledger (XRPL).
Several factors could be driving the increase in circulating supply. However, the major factor is the monthly escrow releases.
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