Ripple’s Chief Technology Officer, David Schwartz, recently addressed discrepancies in XRP’s reported circulating supply, drawing comparisons to Bitcoin holdings attributed to Satoshi Nakamoto. The discussion highlights the challenges of accurately defining "circulating supply" in cryptocurrency.
Circulating Supply Discrepancy: CoinMarketCap vs. XRPScan
An X user highlighted differences between the circulating supply figures for XRP provided by CoinMarketCap (57.64 billion tokens) and XRPScan (62.23 billion tokens). Schwartz emphasized that determining circulating supply depends on specific criteria:
“How you measure circulating supply depends on what you consider circulating and what you don’t. Are Satoshi’s bitcoins circulating? Reasonable people can disagree.”
Key Factors Influencing Circulating Supply
- Escrowed Tokens: Ripple holds XRP in on-ledger escrows, releasing them monthly over 42 months. Unused tokens return to escrow.
- Dormant Wallets: Similar to Satoshi’s Bitcoin, inactive holdings may be excluded from circulating supply.
- Reporting Standards: Platforms like CoinMarketCap may apply different criteria for inclusion.
👉 Learn more about XRP’s tokenomics
Broader Implications for Crypto Metrics
The debate underscores industry-wide challenges:
- Transparency: Standardized definitions are critical as crypto integrates into mainstream finance.
- Investor Clarity: Accurate metrics prevent misinformation and build trust.
FAQ Section
Q: Why does XRP’s circulating supply differ across platforms?
A: Varying methodologies—some exclude escrowed or dormant tokens, while others count them.
Q: How does Satoshi’s Bitcoin relate to XRP’s supply?
A: Both cases involve dormant holdings that platforms may exclude from circulation.
Q: What’s Ripple’s role in XRP’s supply?
A: Ripple manages escrow releases but doesn’t control all circulating tokens.
👉 Explore crypto supply metrics
Conclusion
Schwartz’s analogy to Satoshi’s Bitcoin highlights the subjectivity in crypto metrics. As the industry matures, clearer standards will enhance accountability and adoption.
Disclaimer: This content is informational only and not financial advice. Conduct independent research before investing.
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