Expert Provides Evidence That XRP Price is Not Lagging Due to Increased Supply

A prominent $XRP and crypto analyst has shared market evidence to debunk claims that $XRP’s underperformance is due to an increase in supply.

CryptoInsightUK is a top market analyst who remains bullish on $XRP amid prevalent investor angst. The market watcher has continued to dispel false claims about $XRP’s price direction and the factors behind its underperformance.

Some $XRP community members have attributed the underperformance to the inflation caused by Ripple’s monthly escrow releases and subsequent $XRP sales. However, others have persistently debunked these claims, with CryptoInsightUK recently sharing market evidence to back his argument.

$XRP Supply Against Broader Crypto Market

He pointed out that $XRP hit a price of $3.37 on Jan. 7, 2018, when its circulating supply stood at 38.7 billion. At this point, $XRP had a market cap of $130.4 billion, while the total market cap of the crypto industry was $711 billion. $XRP accounted for over 18% of the global crypto market cap.

I am going to debunk 1 $XRP hater argument very quickly right now.

The argument around supply restricting price discovery.

On January 7th 2018, $XRP price was $3.37, with a circulating supply of 38.7 Billion $XRP.

At this time, the total market cap of crypto was $711 Billion;… pic.twitter.com/jFooMssD31

— Cryptoinsightuk (@Cryptoinsightuk) February 19, 2024

CryptoInsightUK further highlighted that $XRP’s circulating supply had increased to 47 billion as of Nov. 7, 2021. This marked a 21% increase in circulating supply in nearly four years. However, it bears mentioning that the broader crypto market recorded a bull run in 2021.

This bull run resulted in a surge in the broader crypto market cap to $3.032 trillion as of Nov. 7, 2021, marking a 325% increase from the $711 billion valuation recorded in January 2018. The rise had led to an addition of over $2.32 trillion in the crypto market over four years.

In a subsequent remark, he showed that other crypto assets had also increased their circulating supplies. For instance, Ethereum’s ($ETH) supply rose by 22%. Nonetheless, despite recording a larger inflation rate, $ETH rose 382% within this timeframe. This also occurred with other assets.

CryptoInsightUK emphasized that the fact that the broader crypto market recorded an additional $2.3 trillion when $XRP’s supply increased by 21% shows that the $XRP’s underperformance is not due to its inflation rate.

The market analyst acknowledged that some external factors could contribute to $XRP’s underwhelming price movements. However, he stressed that market participants should not hold the belief that this factor is the increase in the token’s supply.

The $HBAR Case

In a separate analysis, market watcher and Hedera ($HBAR) investor CrediBULL shared similar sentiments regarding the inflation rate of cryptocurrencies. Interestingly, $HBAR investors also believe the token’s price is down due to an increase in supply.

Pro-crypto attorney Bill Morgan highlighted CrediBULL’s remarks. The market analyst pointed out that $HBAR was trading in the $0.20 to $0.25 range in February 2022 when its supply was around 15 billion tokens.

Great explanation. People in the #XRPcommunity carrying on about Ripple dumping should listen to this and draw some lessons. $HBAR’s supply increasing from 15 billion to 33 billion in two years but the $HBAR price higher than two years ago. This is because the circulating supply is… https://t.co/FBidJ29iYt

— bill morgan (@Belisarius2020) February 19, 2024

Notably, $HBAR’s price collapsed with the rest of the crypto market as the token’s supply rose. The price hit a bottom of $0.0355 on Dec. 31, 2022. Since then, $HBAR’s supply has continued to increase, reaching 33 billion tokens as of press time.

However, the price has surged since December 2022 despite the persistent increase in supply, with $HBAR recording a 204% increase in value within this timeframe.

CrediBULL confirmed that smart money investors have continued accumulating the increase in supply, a trend in every market.

This trend usually leads to an accumulation phase in the market, which usually precedes a period of the market uptrend.

Attorney Morgan noted that this pattern is the same with $XRP, where the supply has increased over the years. He noted that the underperformance is not particularly due to the increased supply.