The market capitalization of distributed ledger tech company Ripple’s XRP token may be overvalued by the maximum amount as $6 billion, as per a recent report from crypto analytics firm Messari.

Ahead of Ripple’s q4 2018 report, Messari researched the “health and legitimacy” of the XRP’s market capitalization using data from cryptocurrency exchanges and third party cryptocurrency data services.

The report states that XRP’s liquid circulating supply may be overestimated by 48 %, putting the “actual” market cap at $6.9 billion rather than the $13 billion presently reported on CoinMarketCap. Messari states that:

“In addition to the 59 billion XRP held on Ripple’s record... there may be vital, persistent sell-side pressure within the XRP market looking on the length and structure of selling restrictions placed on Ripple’s market making partners, a Ripple affiliated foundation, and Ripple’s co-founders, all of which seem to have negotiated rate limits for sales supported exchange commercialism volume of XRP.”

Messari notes that current estimates may include illiquid positions like 5.9 billion XRP that were pledged to the RippleWorks nonprofit foundation by Ripple co-founder Chris Larsen, additionally to 2.5 billion XRP held by RippleWorks, that are reportedly under selling restrictions.

Messari additionally believes that 4.1 billion XRP that was sold by Ripple’s money services business, XRP II, may be subject to re-selling restrictions.

The report notes that it's not possible to create precise estimates while not a disclosure from Ripple, that it had not received by the time of publication. Messari conjointly states that Ripple didn't disclose the methodology or reference exchange data that it uses to calculate the XRP trading volume.

In Ripple’s q4 report, that was released on January. 24, the firm noted a decrease in token sales from $163 million in Q3 2018 to $129 million in q4 2018.

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