XRP Ledger (XRPL) Token Market Cap Surged 47% In Q4 To $169M: What Caused The Surge?
10 Februar 2024 - 1:00AM
NEWSBTC
A recent report by Messari sheds light on the state of the XRP
Ledger (XRPL) and its notable performance during the fourth quarter
(Q4) of 2023. The report highlights significant milestones,
including its native token market capitalization, distribution,
burning mechanism, price movement, legal battle, and network
activity. Distribution Of 4 Billion XRP Contributes To Market Cap
Growth? As of Q4 2023, XRP, the native token of the XRPL,
emerged as the sixth-largest cryptocurrency by market
capitalization, reaching $33.7 billion. The token’s circulating
market cap witnessed a substantial 21.2% increase
quarter-over-quarter (QoQ) and an impressive 93.6% growth
year-over-year (YoY). According to Messari, the increase in
market capitalization was primarily due to the distribution of 4
billion XRP and a significant price spike on November 13, when the
token reached as high as $0.7503. Related Reading: Crypto CEO Says
Get Ready For Solana To ‘Rally Higher Again’ With New Target
Throughout 2023, 4 billion tokens were distributed, accounting for
8% of the XRP supply from the end of 2022. While this distribution
contributed to the increase in market cap, it was overshadowed by
the impact of the price spike. Additionally, the XRPL employs
a transaction fee-burning mechanism, applying deflationary pressure
to the total supply of 100 billion XRP. However, the low
transaction fees on the network have resulted in a relatively low
burn rate of approximately 12 million XRP since the inception of
the XRP Ledger. Network Activity Shows Mixed Trends In Q4 2023 Q4
2023 marked a significant turning point for XRP, concluding a
multi-year legal battle with the US Securities and Exchange
Commission (SEC). In July 2023, the district court ruled that XRP
is not considered an investment contract or a security,
distinguishing it from many other blockchain assets. This
ruling triggered a surge in XRP’s price, with an increase of over
70% on July 14 and a peak of $0.82 on July 20. The subsequent
relisting of XRP on major cryptocurrency exchanges further
bolstered its position. Network activity on the XRPLedger
displayed mixed trends in Q4. While active addresses decreased by
31.3% QoQ, transactions increased by 22.7% QoQ. Notably, a
significant portion of transaction activity originated from a group
of accounts sending transactions to a single account for
inscription-related activity. The number of accounts on the XRPL
increased by 188,000, reaching 5.00 million in Q4. Related
Reading: Bitcoin Flies Above $47,300, But Watch Out For Extreme
Greed Overall, the Q4 2023 report on the XRP Ledger showcases its
growth, driven by various factors such as price spikes, legal
victories, and network activity. With its expanding market
capitalization and increasing adoption, XRP continues to solidify
its position in the cryptocurrency market. Featured image from
Shutterstock, chart from TradingView.com
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