XRP continues to surpass Ethereum in fully diluted valuation, despite Ethereum's leading position in current market capitalization.
Rise of XRP's Fully Diluted Valuation
The fully diluted valuation of XRP has remained above Ethereum's for several days. This metric considers both circulating and locked tokens, representing a hypothetical market capitalization if all tokens were released at the current price. Currently, XRP maintains a $234 billion valuation, while Ethereum's valuation remains lower, despite a larger current market cap.
Ripple's Role in Regulating XRP Supply
Ripple holds approximately 4.5 billion XRP. Additionally, over 38 billion tokens are secured in escrow, with a billion tokens unlocked monthly. A portion of these tokens is used for operational needs, but most are re-locked into escrow, affecting the token’s circulating supply.
Ethereum's Dynamic Supply Model
Unlike XRP, Ethereum operates on a dynamic supply model. Its total supply is not fixed and fluctuates based on market conditions. Ethereum can be inflationary or deflationary depending on network activity and token burn rates. Recent data indicates an increase of 0.72% in Ethereum’s supply, with an addition of 71,170 tokens.
While XRP briefly overtook Ethereum in market capitalization in 2018 after the launch of xRapid, it is uncertain if a similar shift could happen again. Locked token supplies, issuance strategies, and network dynamics will continue to affect these assets' valuations.
