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Ripple CTO David Schwartz Breaks Down Discrepancies in XRP’s Circulating Supply: What Counts as ‘Circulating’ in Crypto?

Ripple’s Chief Technology Officer (CTO), David Schwartz, recently addressed a growing debate about the discrepancies in XRP’s reported circulating supply, sparking discussions about the complexities of measuring this key cryptocurrency metric. Schwartz’s comments, particularly comparing the issue to Bitcoin’s holdings attributed to its creator, Satoshi Nakamoto, have shed light on the challenges of accurately defining “circulating supply” in the crypto world.

A recent post on X pointed out significant differences between the circulating supply figures reported by CoinMarketCap and XRPScan. CoinMarketCap reports XRP’s circulating supply at 57.64 billion tokens, while XRPScan lists a higher figure of 62.23 billion. Schwartz responded by emphasizing that calculating circulating supply is subjective and hinges on how one defines what is “circulating.” He pointed to Bitcoin as an example, asking, “Are Satoshi’s bitcoins circulating?” His reference to Bitcoin’s founder raises an important question: are coins held in a dormant wallet, like Satoshi’s estimated 1 million BTC, considered part of circulating supply?

Schwartz’s analogy underscores the complexities involved in the crypto world’s measurement of circulating supply. For Bitcoin, while the total supply is listed at 19.81 million BTC out of a maximum 21 million, the majority of Satoshi’s holdings remain untouched, and many consider them effectively out of circulation.

Ripple’s XRP faces its own unique challenges in this regard. The XRP ledger holds a significant amount of tokens in escrow accounts, with monthly releases set to continue for 42 months. These tokens, though technically part of the total supply, cannot be accessed until they are released from escrow, adding complexity to the calculation of circulating supply.

Also Read: XRP Price Up 518% Since November – Can It Break $3.2 Next?

The debate over XRP’s circulating supply and the comparison to Bitcoin’s dormant coins highlights the broader need for clarity and standardization in the cryptocurrency industry. As cryptocurrencies become more integrated into mainstream finance, defining key metrics like circulating supply with consistency will be crucial for ensuring transparency and accurate market valuations.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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