I received an email from the new exchange Voyager today about the market cap.
“Research released this week by cryptocurrency data company Messari is questioning the actual size of Ripple’s market cap. The report claims that XRP’s total market cap is billions below the number listed by both the company and many data aggregators.
A quick investigation on our end resulted in contradicting numbers from two popular services. CryptoCompare lists XRP’s market cap at nearly $31 billion. CoinMarketCap, on the other hand, lists it dramatically lower, at $13 billion.
A deeper look revealed that the difference between the two numbers is in the way they’re calculated. CryptoCompare calculates the market cap like this: current asset price X total number of the asset = market capitalization. CoinMarketCap calculates it slightly differently, like this: current asset price X total circulating supply of assets = market capitalization.
Messari’s research introduces yet another number. Using CoinMarketCap’s formula, their report estimates that the “total circulating supply of assets” is much lower, $19.2 billion lower. That’s because their research has led them to believe that an even greater number of XRP’s supply is out of circulation, or in their words, “illiquid or subject to significant selling restrictions.” If true, this implies that Ripple’s circulating supply is 21.8 billion, and its market cap $6.9 billion.
Ripple, however, is denying Messari’s report. A spokesperson for the company stated:
"The term 'market cap' is always a very simple calculation: current price X total number of the asset = market capitalization. That puts XRP's current market cap at approximately $31 billion."
If nothing else, the contradicting numbers from all parties illuminate an important topic: decentralization and the differences between an asset like XRP (which is largely managed by a company) and an asset like BTC (which primarily runs on its own).”