According to CoinMarketCap, the two largest virtual currencies in the market are currently Bitcoin (BTC) and XRP. Bitcoin has a market capitalization of $69.58 billion and XRP $14.37 billion.
However, there are some cryptocurrency and XRP enthusiasts that believe that CoinMarketCap is not measuring correctly the market capitalization of virtual currencies. If we take into account the total supply of coins, XRP would have a market capitalization of $35 billion, while Bitcoin would have a market capitalization of $67.5 billion dollars.
At the same time, when XRP reached its all-time high back at the beginning of the year, its market capitalization would have been larger than this of Bitcoin.
What a bunch of F***** ! Wow! They screwed us over @CoinMarketCap ! Jesus what a horrible thing to do to XRP ! They are responsible for the manipulation of the price as well as a lot of people loosing money… #SEC_News @SEC_News look into this!
— My XRP (@MyXrp589) November 29, 2018
This is why CoinMarketCap’s official account informed that their definition of market capitalization is different than the one that Yahoo Finance has. Nevertheless, the company said that it is possible to check the market capitalization of the virtual currencies following Yahoo’s definition.
Hello, please understand that CoinMarketCap and Yahoo Finance’s definition of market cap are different. However, if you would like to see coins by its market capitalization using total supply, please see https://t.co/6qhiRek8zH Thank you.
— CoinMarketCap (@CoinMarketCap) November 29, 2018
This situation led to many different theories related to the fact that CoinMarketCap and similar sites are trying to keep the XRP token down. These individuals also believe that these sites exclude the price XRP has in South Korean markets. In these exchanges, XRP could be traded for a higher price than in other worldwide exchanges.
However, it is important to mention that an important number of XRP tokens are locked in escrow. This also must be taken into account because these coins are currently not available for the general public and not being traded in the market. If these tokens are released, the market would clearly be affected. XRP price would clearly tank if half or all these coins are suddenly traded in the market.
At the same time, Bitcoin’s market capitalization could also be reduced. CoinMarketCap takes into consideration coins that are held by Satoshi Nakamoto and he never moved and also the several million Bitcoin coins that are lost. Bitcoin could have a market capitalization of $45 billion taking these things into account.
It is always important to have an analytical point of view at the time of reading and understanding these numbers. CoinMarketCap does not provide the ultimate way of measuring a coin’s value but it helps to understand the market in a better way.
There are other metrics and things that can play an important role at the time of understanding the usage and valuation of a virtual currency. We could also include the number of active wallets in an network or the funds transacted in 24 hours.