- XRP’s fully diluted valuation has surpassed Ethereum’s, driven by locked token supply and controlled issuance strategies.
- Ripple holds 4.5 billion XRP, while 38 billion tokens remain locked in escrow, influencing XRP’s circulating supply and valuation.
- Ethereum’s dynamic supply model allows for inflation or deflation, with recent data showing a 0.72% increase in total ETH supply.
The fully diluted valuation (FDV) of XRP has remained above Ethereum’s for several consecutive days. FDV accounts for both circulating and locked tokens, representing a hypothetical market cap if all tokens were released at current prices. Despite this, Ethereum still leads in market capitalization.
XRP currently maintains a $234 billion FDV value despite all the remaining 42 billion tokens still in reserve. Ethereum keeps a lower FDV while maintaining a larger current market capitalization. The total market value of XRP reaches $139 billion which exceeds the $229 billion value of Ethereum. The locked tokens within XRP reduce its probable monetary worth.
Ripple’s Role in XRP Supply
Ripple, the entity associated with XRP, currently holds approximately 4.5 billion XRP. Additionally, over 38 billion tokens are secured in escrow, with a billion tokens unlocked monthly. A portion of these tokens is used for operational needs, while most are re-locked into escrow, affecting the token’s circulating supply.
Unlike XRP, Ethereum operates on a dynamic supply model. Its total supply is not fixed, fluctuating based on market conditions. Ethereum can be either inflationary or deflationary, depending on network activity and token burn rates. Recent data from ultrasound.money shows that Ethereum’s supply increased by 0.72% in the past month, adding 71,170 tokens.
While XRP briefly overtook Ethereum in market capitalization in 2018 following the launch of xRapid, it remains uncertain if a similar shift could happen again. Current market trends suggest that locked token supply, issuance strategies, and network dynamics will continue influencing both assets’ valuations.
