Report: Ripple’s Market Cap Could Be Overstated by $6 Billion
Crypto company Messari investigated the amount of Ripple in circulation and concluded that XRP could be overvalued by $6 billion.
According to CoinGecko, now the total market capitalization of XRP is $12.7 billion. Data from another popular tracker — CoinMarketCap — says that Ripple's capitalization stands at $12.8 billion. XRP ranks second by this indicator, right after BTC.
But Messari claims that this data may be overestimated. Market capitalization represents the value of all coins in circulation. Now, according to the trackers, 41 million XRP are in circulation. According to Messari, 19.2 million XRPs of total circulation are “illiquid or under sales restrictions,” including 6.7 billion XRPs that belong to Jed McCaleb, co-founder of Ripple.
Another 5.9 billion XRP belong to the non-profit organization RippleWorks. At least 2.5 billion XRPs of them are also banned from selling. Moreover, Messari found 4.1 billion XRPs sold through the Ripple subsidiary. Those coins also subject to a sales restriction.
Considering all these factors, Messari comes to the conclusion that Ripple's market capitalization could be overestimated by at least $6 billion.
A Ripple spokesperson told CoinDesk that Messari’s study “is based on incorrect market capitalization calculation.” Moreover, the Ripple capitalization "is now approximately $31 billion."