- XRP’s market cap was less than $600 million away from reaching BNB at the time of writing.
- There is more development activity going on at the XRP Ledger than at the BNB Chain.
The market capitalization of Ripple [XRP] played catch up again and substituted for Binance coin [BNB] at risk. Previously, AMBCrypto had reported how XRP surpassed its market cap Circle [USDC] And Cardano [ADA] to fifth position.
With the token’s recent growth, BNB may need to remain cautious so that it does not become the next victim to be pegged. According to CoinMarketCap, XRP’s market cap at the time of writing was $36.53 billion. BNB, in fourth place, had a market capitalization of $37.08 billion.
Market capitalization is calculated as the product of a cryptocurrency’s price and its circulating supply. So there are two main factors that can change a project’s market capitalization. First, significant changes can occur as the price rises (or falls). The other condition is that new coins come into circulation.
Prices and the external influencers
For XRP, the current grow can be linked to price action. At the time of writing, XRP was exchanging hands at $0.67 – up 22% in the last seven days. BNB, on the other hand, has not had a bad week. In fact, the price of $243.78 means that it has risen 7.94% from its value.
Source: CoinMarketCap
Well, you might be wondering why XRP has such a market cap with such a big price difference. The answer to this is found in the circulating supply. Unlike BNB, which had a circulating supply of 151.70 million, the amount of XRP in circulation was 53.61 billion.
AMBCrypto’s in-depth findings show that XRP’s potential to turn around BNB’s market cap isn’t just in its price action or supply. But macroeconomic factors such as adoption also play a role.
It is not news that parent company Ripple is suffering from this challenges in the US has looked out of the zone and slowly moved its operations to other countries. Fortunately, other countries, such as the UAE and Singapore, have welcomed the company with open arms.
However, this is no guarantee that XRP would turn around BNB’s market cap, as the project itself has not been dormant. For example, a lot has been developed on the underlying support chain, the BNB chain.
This developments have made the chain more attractive to users as it aims to move from a fee-only protocol to a full-blown DeFi movement.
XRP beats BNB development activity
As expected, the developments have helped withstand the FUD surrounding BNB and the Binance exchange. Despite the partnerships and collaborations that the BNB chain has had lately, Ripple’s development activity seems to be surpassing them.
Source: Santiment
Development activity measures the dedication a project has to improving its products or delivering new features. The above data, analyzed on-chain by 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 dedicated to the XRP Ledger (XRPL) than the BNB Chain.
Read Ripple [XRP] Price prediction 2023-2024
In conclusion, it may be difficult to determine whether XRP BNB’s market cap can turn around. At the same time, it’s not impossible, especially since it would only require a mild 0.96x from the end of XRP.
But would this mean that BNB’s market capitalization would continue to stagnate or decline? Time will tell. For now, enjoy a seat on the interesting ride that the crypto market offers.