The concept of 'circulating supply' has once again come into focus in the world of cryptocurrencies after Ripple CTO David Schwartz compared XRP to Bitcoin.
Circulating Supply Questions
According to CoinMarketCap, the circulating supply of XRP is 57.64 billion, while XRPScan puts it at 62.23 billion. David Schwartz tried to resolve the issue by pointing out differences in 'circulating supply' definitions across platforms. He noted that identifying what can be considered circulating assets is challenging and ambiguous.
XRP's Circulating Supply Dynamics
Ripple's XRP holdings include tokens locked in on-ledger escrows, which are released monthly over a 42-month schedule. Until released, Ripple cannot access or utilize these tokens. This structure influences interpretations of XRP's circulating supply, further complicating accurate reporting.
Challenges in Standardizing Cryptocurrency Metrics
The debate underscores broader challenges in standardizing metrics for cryptocurrency markets. The lack of consensus impacts transparency and complicates comparisons between digital assets, particularly for traders and investors relying on accurate data.
Discrepancies in XRP's circulating supply highlight the critical need for developing standards for cryptocurrency metrics. This will aid in improving transparency and accuracy of information for market participants.
