The annual inflation of XRP has exceeded 20%, which is 5 times as high as the inflation of BTC. The figures were provided by a research company named Messari. This is the highest annual inflation rate registered among cryptocurrencies with decent market capitalization. Apparently, a major increase in the amount of circulating coins leads to a cheaper coin, which is something that's going on with XRP.
According to Messari, there's a correlation between the cryptocurrency's price and its supply inflation rate. An good example is that XRP, which increased in quantity by 20.5% in a matter of 12 months, lost around 56% of its value over the same reporting period, while Bitcoin, which saw its supply increase by 3.7%, gained almost 10% in value over the same period.
At the same time, it should be noted that over the next couple of months, the supply inflation rate of BTC is expected to decrease. The maining prize was cut in half from 12.5 BTC to 6.25 BTC. This means that in 3 years, the BTC supply will be twice as low.
The existence of such correlation is confirmed by Multicoin Capital. The experts confirm that higher supply leads to lower prices, especially when it comes to XRP.
At the same time, NordFX experts say that 30% of XRP coins are currently circulating the market while in case with BTC, the figures are close to 87,5%.
