The XRP Army cost per currency base is $ 1.38, 7 times the current price

Most XRP investors are “deep in the red” Messari cryptanalyst Ryan Watkins uses capitalization as a measure.

Watkins made the acclamation in a June 16 Tweet say “the estimated total cost base of XRP is $ 1.38”, based on the realized capitalization of the cryptocurrency. Since the current XRP is $ 0.19, this would mean Token holders paid an average of more than seven times the price.

The token capitalization is a metric created by the cryptocurrency analytics site Coin Metrics. It is calculated by evaluating each supply unit at the price that was last shifted in its respective blockchain. According to Watkins The metric can be used as an “estimate of the additional cost base of a crypto asset”..

The XRP Army cost per currency base is $ 1.38, 7 times the current price
The XRP Army cost per currency base is $ 1.38, 7 times the current price

“The metric is designed to represent capitalization in a more familiar ‘by currency’ format.”, said Watkins in a follow-up tweet.

The realized capitalization of XRP

With this data Messari calculated XRP’s implementation capitalization at approximately $ 43,250 million as of June 15rather than the $ 6 billion market cap calculated by multiplying the total value of the XRP in circulation by the market cost of each token.

Ryan Watkins, Messari

Source: Ryan Watkins, Messari

The cryptanalyst explained that The outlier has some disadvantages::

“Neither the realized capitalization nor the estimated cost base derived from it is perfect, and there is no guarantee that the investor base of a crypto asset will behave in a certain way depending on its estimated cost base. However, to the extent that these estimates are generally accurate, they provide interesting insight into the behavior of investors. “

“Although XRP closed just over $ 1 in just 2.1% of its trading days, XRP’s estimated total cost base is $ 1.38.” Watkins said On twitter. “”This suggests that most XRP investors are in the red.“”

Ryan Watkins, Messari

Source: Ryan Watkins, Messari

XRP’s poor performance in 2020

The cryptocurrency already had first and second quarters of topicality for 2020. Cointelegraph reported in May Tether (USDT) had overtaken XRP and was the third largest cryptocurrency by market cap. In April, Messari called the token the worst performing crypto asset in the top 25 currencies by market cap for the first quarter of 2020.

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