- XRP’s market cap was less than $600 million away from reaching BNB at press time.
- There is more development activity going on at the XRP Ledger than the BNB Chain.
The market cap of Ripple [XRP] was playing catch-up yet again, putting the place of Binance Coin [BNB] at risk. Previously, AMBCrypto had reported how XRP surpassed the market cap of Circle [USDC] and Cardano [ADA] into fifth position.
With the token’s recent growth, BNB may need to stay cautious, so that it does not become the next casualty to be pegged back. According to CoinMarketCap, XRP’s market cap was $36.53 billion at press time. BNB, in fourth place, had a market cap of $37.08 billion.
Market cap is calculated as the product of a cryptocurrency’s price and the circulating supply. So, two main factors can alter a project’s market cap. First, significant changes might occur if the price increases (or decreases). Then, the other condition is if new coins appear in circulation.
Prices and the external influencers
For XRP, the current growth could be linked to price action. At the time of writing, XRP exchanged hands at $0.67— a 22% hike in the last seven days. BNB, on the other hand, has not had a bad week. In fact, its $243.78 price means that it had gained 7.94% with respect to its value.
Source: CoinMarketCap
Well, you might wonder why XRP has such a market cap with such a large price difference. The answer to that is found in its circulating supply. Unlike BNB, which had a circulating supply of 151.70 million, the number of XRP in circulation was 53.61 billion.
From AMBCrypto’s in-depth findings, the potential of XRP to flip BNB’s market cap is not just found in the price action or supply. However, macroeconomic factors such as adoption are also playing a role.
It is not news that parent company Ripple, because of its challenges in the U.S. has been looking out of the zone and slowly moving operations to other countries. Fortunately, for the firm, other countries like the UAE, and Singapore have welcomed it with open arms.
This is, however, not a guarantee that XRP would flip BNB’s market cap, as the project itself has not been in slumber. For example, there has been a lot of development on its underlying support chain, the BNB Chain.
These developments have made the chain more attractive to users, as it aims to move from a fee-only generating protocol to a full DeFi movement.
XRP beats BNB’s development activity
As expected, the developments have been helpful in resisting the FUD around BNB and the Binance exchange. Despite the partnerships and collaborations, the BNB Chain has had lately, Ripple’s development activity seems to be outpacing it.
Source: Santiment
Development activity measures the dedication a project has toward enhancing its products or shipping new features. The data above, analyzed on-chain from Santiment, showed that Ripple’s development activity had grown to 1.71.
BNB’s development activity, on the other hand, fell to 0.036. This disparity means that there were more developers committed to the XRP Ledger (XRPL) than the BNB Chain.
Read Ripple’s [XRP] Price Prediction 2023-2024
In conclusion, it might be tricky to ascertain if XRP’s market cap can flip BNB. At the same, it is not impossible, especially as it would only take a mild 0.96x from XRP’s end.
But would that mean BNB’s market cap would remain stagnant or decrease? Time will tell. For now, enjoy a seat on the interesting ride offered by the crypto market.
