In the world of cryptocurrencies, we have seen huge jumps in the value of some currencies, especially BNB, which jumped from $15 to $700, and XRP, which rose from $2.5 to $500. Many considered these jumps to be due to certain events or influential figures in the market. Regarding the two mentioned currencies, some believe that Binance CEO Zhao was behind this huge increase in the value of the currencies.
But what actually determines the value of cryptocurrencies? Is it supply and demand? Or something else?
Let's analyze the topic more deeply:
1. Number of units in circulation
When comparing BNB and XRP, there is a clear difference in the number of units available for trading. BNB has only 144 million units, which is a small number compared to many other coins. XRP has 114 billion units, which is a very large number.
2. Difference in market cap
The market cap of BNB is around $1 billion, which reflects the ratio between the number of available units and the price of the coin. But if we look at XRP, we find that its market cap is much larger due to the large number of available units. The unit price of XRP is lower, but the large number of units makes the market cap increase significantly.
3. Ratio and proportion
The relationship between the number of units and the price is a ratio. When the number of units is small, the price of the coin can rise significantly to high values, as happened with BNB. However, when the number of units is large, as in the case of XRP, the price per coin may remain relatively low despite the strong demand, but the total market cap will remain large due to the large number of units.
4. Conclusion
The difference between BNB and XRP is not only in other factors such as market influences or the individuals running the projects, but also a clear difference in supply and demand and the percentage of available units. Ultimately, the fewer units there are, the more the currency can rise in value, which creates this huge difference between coins like BNB and XRP.
This is the reason why BNB has seen such huge jumps compared to XRP, although there are other factors that play a role in determining the value of the coin.