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Most top crypto assets share similar characteristics — they’re mostly decentralized, global, non-sovereign, and permissionless assets not tied to a real-world asset. Where cryptocurrencies largely differ, then, is in their monetary policy — or in some cases, their lack thereof.
A researcher at Messari recently remarked that the inflation rate of XRP’s supply is hundreds of percent higher than that of Bitcoin or Ethereum.
The high inflation rate of XRP’s supply compared to Bitcoin
According to Florent Moulin — part of the research and product team at crypto research firm Messari — his firm’s data indicates that the supply of XRP was inflating at a much higher pace than that of other top cryptocurrencies all throughout the past 12 months.
He reported that the third-largest cryptocurrency had a supply inflating at a rate of 20 percent over the last year — “five times higher than [that of] BTC” prior to the halving.
To put 20 percent into some context, the inflation rate over the past 12 months of Tezos (XTZ) was 13 percent, 5.1 percent for Litecoin, and 4.7 percent for Ethereum. (Also, most established fiat currencies have an inflation rate of 1-3 percent each year, though the way central banks determine the inflation of, say, the U.S. dollar is not growth in the supply of money.)
Top cryptocurrencies’ inflation rate data from Messari.io
As a pertinent note, Messari is somewhat of a topic of controversy within the XRP community because of how it treats the cryptocurrency in terms of calculating supply and inflation.
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