The fully diluted valuation (FDV) of the Ripple-linked XRP token has now exceeded Ethereum's valuation for several days.
Comparison of XRP and Ethereum Valuations
The FDV metric considers both circulating and locked tokens. In a scenario where all tokens are released at current prices, XRP would be above Ethereum. However, XRP is still not close to catching up with Ethereum's market cap: the two tokens are currently valued at $229 billion and $139 billion, respectively.
XRP Supply and Circulation
XRP's FDV is $234 billion, with nearly 42 billion tokens not in circulation. According to Ripple's Q4 2024 report, the total number of XRP tokens held by Ripple is nearly 4.5 billion, with more than 38 billion locked in the company's escrow account. Ripple unlocks a billion XRP tokens from escrow monthly. Some of these are sold or used for company operations, while the majority are re-locked.
Ethereum Supply Changes
Ethereum has a dynamic supply model, meaning the total number of tokens is not capped, unlike XRP. It can be inflationary or deflationary based on specific market dynamics. Over the past month, the total Ethereum supply has grown by 0.72% with the addition of 71,170 tokens, indicating an inflationary phase.
Despite this, it is not far-fetched to think XRP might surpass Ethereum by market capitalization in the future. The Ripple-linked token briefly surpassed Ethereum back in 2018 following the release of xRapid.
