Analysis Examines How Many of XRP's 63 Billion Circulating Tokens Are Actually Available for Trading
(2 hours ago) · 1 source · Summarized by CryptoBipto
An analysis explores the gap between XRP's reported circulating supply of 63 billion tokens and the number of tokens that are practically available for purchase on the open market. The piece highlights that circulating supply figures can be misleading because many tokens are held long-term, locked in wallets, or otherwise unavailable for active trading.
WHY IT MATTERS
When you hear that a cryptocurrency has a certain number of tokens "in circulation," it sounds like all of those tokens are available to buy and sell. But that is not always the case. Think of it like houses in a city: just because there are 100,000 homes does not mean 100,000 are for sale right now. Many are occupied by people who have no plans to move. Similarly, many crypto tokens are held in wallets by people or organizations that are not actively trading them. "Circulating supply" is the total number of tokens that exist outside of locked reserves, but "liquid supply" — the tokens actually being offered for sale on exchanges — can be much smaller. This distinction matters because a token's market cap (circulating supply multiplied by price) might suggest a large, deep market, when in reality the amount available to trade could be quite limited.
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- cryptoslate.com
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