In the last quarter of 2023 XRP While ‘s growth performance has been relatively slow, Messari’s latest report shows that the cryptocurrency’s price is up 80%, close to the 93.6% year-on-year increase in the market’s total value.
The XRP community has stirred up a lot of controversy as it complains about the altcoin’s consistently poor performance. The asset’s failure to follow the overall market was highlighted by the fact that although the crypto market witnessed an impressive increase in the last quarter of 2023, its price failed to keep up with this momentum.
However, details in Messari’s latest “State of XRP Ledger” report reveal that while XRP is lagging behind the rest of the market, it is still showing impressive growth in the last quarter of 2023. The token has increased greatly in many areas, including its price and circulating market cap.
XRP Price Increased by 19.3% Compared to the Previous Quarter and 80% Compared to the Previous Year
According to CoinGecko’s data, Messari stated that XRP closed 3Q 2023 at a price of $0.52, which represents a 9.8% increase compared to the figure at the end of 2Q 2023. Interestingly, the asset saw a higher valuation rate in Q4, closing the quarter at $0.62.
At this price, XRP is up 19.3% quarter-over-quarter despite its disappointing performance compared to the broader market. Messari emphasized that the asset’s growth rate was good, but lower than the 53.8% average quarterly increase in the overall market.
Additionally, the price of $0.62 represented an impressive increase from the $0.345 that XRP closed in the fourth quarter of 2022. This represents an 80% year-on-year price increase, indicating that investors’ bags have generally appreciated in value over this time frame.
Market Value of XRP Increased by 21.2% Compared to the Previous Quarter and 93.6% Compared to the Previous Year
The Messari report also detailed the growth rate of XRP’s circulating market value on a quarterly and annual basis. Notably, at the end of Q4 2023, XRP ranked sixth among the largest crypto assets by market cap, with a value of $33.7 billion.
This figure marks a 21.2% increase from the asset’s value at the end of Q3 2023. Additionally, data confirms that XRP has a circulating market capitalization of $17.4 billion at the end of Q4 2022. This shows the token valuation is up 93.6% year over year as of Q4 2023.
XRP’s market cap growth has outpaced price growth due to contributions from increased circulating supply. Notably, Ripple receives 1 billion XRP tokens every month from escrow unlocks. The firm uses some of these funds, typically 200 million, and relocks the rest.
This perpetual escrow unlocks the circulating supply, further increasing the market value of the asset. However, most of the increase in market value is due to the price increase of XRP.
This suggests that although XRP has performed well recently, investor concerns are only arising due to outperformance from the broader market.
Meanwhile, the Messari report highlighted that the XRPL ecosystem is experiencing similar growth. The cumulative market value of tokens in XRPL increased to $169 million in the 4th quarter of 2023, recording a growth of 47% compared to the previous quarter. Sologenic (SOLO) is the largest contributor to this market cap as the dominant asset on the network.
Source : The Crypto Basic