XRP Inflation Data Shows XRP Price Lags Solana Due to Low Demand, Not Ripple Sales

XRP’s inflation rate and underperformance compared to other cryptocurrencies like Solana and Ethereum can be attributed to low demand rather than the inflation caused by Ripple’s sales. Ripple releases 1 billion XRP from its escrow wallet every month to maintain stability in the market. Some theories suggest that XRP’s poor performance is due to the selling pressure caused by these unlocks. However, data comparing XRP’s inflation rate with Solana’s shows that XRP’s underperformance is not a result of inflation. XRP’s annual inflation has averaged 6.43% over the past nine years, while Solana’s inflation rate has been much higher at 16.38%. Despite Solana’s higher inflation rate, it has outperformed both Ethereum and XRP due to increased demand. This indicates that XRP’s underperformance is primarily due to a lack of demand rather than inflation.