Research Report Claims XRP’s Market Cap Is Overstated by $6.1 Billion


Messari, a crypto market research firm, recently published a report claiming that the current market cap of Ripple’s XRP (XRP) is overstated by some $6.1 billion due to confusion over XRP’s liquid circulating supply.

In the report, Messari claims that both XRP’s actual circulating supply and market cap are currently overstated by 46%, meaning that XRP’s market cap is closer to $6.9 billion than the $13 billion that it is listed at on CoinMarketCap or the $31 billion on CryptoCompare.


Notably, Messari’s research found that Ripple’s market-making partners, a Ripple-affiliated foundation, and Ripple’s co-founders all have significant holdings. And, based on current selling restrictions, these coins should be considered illiquid and not included in the circulating supply.

Essentially, Messari believes 19.2 billion of the 41.0 billion XRP currently in circulation may be illiquid or subject to significant selling restrictions.

“We have reached out multiple times to Ripple representatives for comment, but have not yet received a response to our inquiries,” Messari states. “We acknowledge that some of the estimates in this report lack precision, but believe they are directionally correct, and presented in good faith. We look forward to Ripple’s response, and will update this report accordingly if and when they do reply.”

Messari ends the report by advising major indices and funds to review the report and consider rebalancing their index and fund weightings accordingly.

Unsurprisingly, the XRP Army jumped off the ledge when they saw the report, going as far as threatening Messari’s founder, Ryan Selkis, and his family over the phone. Ironically, their anger may be premature as knocking several billion dollars off the market cap would actually allow XRP’s price to increase further.

Ripple has responded to the report by questioning its validity, telling Forbes, “Not only does this report contain several inaccurate assumptions around lockups and selling restrictions, [but] the entire report is based on an incorrect calculation of market cap. While decentralized digital assets like XRP are different from traditional equities, the term ‘market cap’ is always a very simple calculation: current price X total number of the asset = market capitalization. That puts XRP’s current market cap at approximately $31 billion. We believe that any other calculation of market capitalization for XRP is not a clear representation of the truth.”

Regardless, the price of XRP has seemingly been unfazed by the report and is currently only down 1% over the last 24 hours to $0.314745.

More: Ripple’s Market Cap Is Likely Overstated by $6.1 Billion

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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