Reports from Messari reveal that Ripple has hit an inflation rate of 20%, which is about five times that of Bitcoin, following the recent mass sales of XRP.
Missari’s data analysts have some information that explain the downtrend of XRP in recent times. After a massive sale of tokens, too much XRP in the hands of users has now worsened the currency’s inflation rate which is now at 20%. This is the worst among other well-known cryptocurrencies.
The relationship between price and inflation of XRP
It was Florent Moulin from Messari’s research team who tweeted that while Bitcoin has improved by 20% within the past one year, XRP has worsened by 47%. These performances are linked to the current price and circulating amount of the currencies in question.
Moulin went ahead to give an analogy of Bitcoin and Ripples’ total supply in the market. He says that Bitcoin has supplied more than half of their maximum at 87.5% while Ripple hasn’t even released up to half at 30%.
Kyle Samani who works at Multicoin Capital agrees with Moulin saying that Ripple’s mass sales has caused its price to drop. This is how he puts it:
“The company has been steadily increasing their sales of XRP over the previous three quarters, likely inflicting downward price pressure on XRP.”
But the people at the helm of affairs in Ripple do not agree with Samani and Moulin’s postulates. The CEO, Brad Garlinghouse, believes that the sales have little effect on the price of the currency and that the decisions taken by the executive body is still in the best interest of XRP.
XRP VS other cryptos
XRP is not the only crypto to have hit inflation although it happens to be the worst at the moment. Others in the market and their inflation rates are ETH at 4.7%, LTC at 5.1% and XTZ (known as Tezos) at 13%. XTZ has performed much better appreciating by almost 180% while LTC has lost by 63%.
Following the release of data from Coin360 and CoinMarketCap concerning Ripple’s performance, many now disbelieve Messari’s inflation rate report. There is up to 50% difference between the supplies recorded by Messari and these other notable sites. This is making the wider community question how Messari carries out their research.