XRP Market Cap Jumped $16.6 Billion—The Cost? You Won’t Believe It
The post XRP Market Cap Jumped $16.6 Billion—The Cost? You Won’t Believe It appeared on BitcoinEthereumNews.com. XRP’s valuation ballooned by roughly $16.6 billion in the space of just thirteen hours overnight, yet blockchain-data researcher Dom (@traderview2) says the net spot inflows that set the move in motion add up to only $61 million. “Ever wondered how much money it takes to cause a 16.6 B increase in XRP market cap? … 61 M USD. That’s the net market buying pressure we saw over the last 13 hours,” Dom wrote on X, adding, “So yes, 61 M USD of buy pressure caused a 16.6 B increase in market cap. There’s your daily lesson that market cap is irrelevant – all that matters is liquidity.” Dom’s figures imply that each fresh on-exchange dollar was levered more than 270-fold into notional capitalization, a point underscored when fellow chartist EGRAG CRYPTO (@egragcrypto) replied that the relationship between net flows and apparent value expansion can range “15 × to 30 ×” in ordinary conditions The overnight episode demonstrates why market capitalization – circulation multiplied by last price – is a context-free snapshot rather than a cash-backed balance-sheet number: only the marginal trade sets the price that instantaneously re-marks every unit of supply. How can $61 Million In XRP Cause This? Order-book micro-structure offers the first clue. Most liquidity on centralised venues such as Binance, Upbit and Coinbase sits well outside the top-of-book; the visible spread can be millimetres thick compared with the billions in supposed float. When incremental bids walk the ask ladder, automated market-makers and human market-makers both adjust offers higher, and each uptick immediately revalues every coin in existence. The result is a geometric expansion (or contraction) of market cap that vastly exceeds the underlying cash flow until arbitrage or profit-taking restores depth. The XRP case also highlights the crucial difference between realised cap – what holders actually paid…
The post XRP Market Cap Jumped $16.6 Billion—The Cost? You Won’t Believe It appeared on BitcoinEthereumNews.com.
XRP’s valuation ballooned by roughly $16.6 billion in the space of just thirteen hours overnight, yet blockchain-data researcher Dom (@traderview2) says the net spot inflows that set the move in motion add up to only $61 million. “Ever wondered how much money it takes to cause a 16.6 B increase in XRP market cap? … 61 M USD. That’s the net market buying pressure we saw over the last 13 hours,” Dom wrote on X, adding, “So yes, 61 M USD of buy pressure caused a 16.6 B increase in market cap. There’s your daily lesson that market cap is irrelevant – all that matters is liquidity.” Dom’s figures imply that each fresh on-exchange dollar was levered more than 270-fold into notional capitalization, a point underscored when fellow chartist EGRAG CRYPTO (@egragcrypto) replied that the relationship between net flows and apparent value expansion can range “15 × to 30 ×” in ordinary conditions The overnight episode demonstrates why market capitalization – circulation multiplied by last price – is a context-free snapshot rather than a cash-backed balance-sheet number: only the marginal trade sets the price that instantaneously re-marks every unit of supply. How can $61 Million In XRP Cause This? Order-book micro-structure offers the first clue. Most liquidity on centralised venues such as Binance, Upbit and Coinbase sits well outside the top-of-book; the visible spread can be millimetres thick compared with the billions in supposed float. When incremental bids walk the ask ladder, automated market-makers and human market-makers both adjust offers higher, and each uptick immediately revalues every coin in existence. The result is a geometric expansion (or contraction) of market cap that vastly exceeds the underlying cash flow until arbitrage or profit-taking restores depth. The XRP case also highlights the crucial difference between realised cap – what holders actually paid…
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