XRP Circulating Supply Increase Raises Concerns Among Holders, Analysts

The XRP community has been stirred by a noticeable increase in the circulating supply of cryptocurrency over the past few weeks.

Technical analyst and blockchain developer Xaif.03 (@xaif_03) shared the news on Twitter, posting three images showing XRP’s circulating supply at $56.25 billion, $56.33 billion, and $56.43 billion.

According to the images, XRP had a circulating supply of $56.25 billion on September 1, which remained unchanged until September 7, when it rose to $56.329 billion.

From September 12 to 15, XRP’s circulating supply increased to $56.386 billion. The Wayback Machine did not capture the website on September 13 and 14, but CoinMarketCap data shows that the circulating supply was still $56.329 billion on September 12.

Xaif.03 suggested that Ripple board members may be selling off large quantities of the coin to prevent its price from rising significantly, especially during periods of broader cryptocurrency market uptrends.

“If you look closely at the dates, you will notice that the coin is being sold off in large quantities by Ripple board members to prevent XRP from rising significantly in price, particularly when the broader crypto market is experiencing upward trends,” the analyst wrote in a follow-up tweet.

According to Xaif.03, 40 million units were sold between September 19 and 20. On September 20, CoinMarketCap showed the digital asset’s circulating supply at $56.434 billion, up from $56.386 on September 19.

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The increase in XRP’s circulating supply has sparked concerns among some members of the community, particularly regarding its potential impact on the digital asset’s price and overall market dynamics.

As reported by Times Tabloid earlier this month, concerns about XRP selloffs have resurfaced due to the addition of a substantial quantity of coins to the circulating supply.

However, it is important to note that these concerns are not entirely new within the XRP ecosystem. Adding such a significant number of coins to the circulating supply has once again raised questions.

An increase in supply without a corresponding rise in demand typically leads to price suppression. This phenomenon could explain the relatively stagnant price movement despite broader market rallies.

As of the latest data, XRP remains one of the top cryptocurrencies by market cap, standing at approximately $34.1 billion as its price surged 4.6% over the past 24 hours to $0.605, finally crossing the $0.6 level again.

The circulating supply increase also raised centralization concerns, further bolstered by a recent report showing that very few wallets perform over half of the transactions on the XRP Ledger (XRPL).

Several factors could be driving the increase in circulating supply. However, the major factor is the monthly escrow releases.

: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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