XRP's Ticking Supply: Could a 40% Burn Ignite a Price Surge by 2035?
Is XRP's built-in token burn the secret to its future value? With a maximum supply of 100 billion, the XRP Ledger is designed to be deflationary, burning a small amount of $XRP with every transaction.
Currently, about 5,000 XRP are destroyed daily. While this seems small, analysts are looking at the long-term impact. If network activity explodes, this slow burn could turn into a significant supply shock over the next decade.
Scarcity vs. Price: What Do Projections Show?
Let's break down the potential scenarios by 2035:
📉 Scenario 1: Supply Shock Alone
If XRP's total supply shrinks by 40% due to burns and other reductions, the price could climb to $4.17—a 77% increase—based on scarcity alone, assuming demand stays the same.
📈 Scenario 2: Supply Shock + Rising Demand
Real-world adoption is key. If demand for XRP in cross-border payments grows alongside the supply reduction:
A 50% rise in demand could push the price toward $6.25.
If demand doubles, XRP could trade above $8.00.
🔥 Scenario 3: Hyper-Burn
What if network volume skyrockets, burning 15,000-20,000 XRP daily? This could remove over 100 million XRP from circulation, potentially pushing prices into the $12–$16 range.
The Reality Check
Achieving a 40% supply cut is ambitious. The current burn rate of ~1.8 million XRP per year is a drop in the ocean. A substantial increase in transaction volume and network utility is essential for this scarcity narrative to play out.
Beyond the Burn: The Bigger Picture
While deflation is a powerful factor, some analysts have even bolder predictions based on utility and institutional adoption:
Tradeship University founder Cameron Scrubs believes XRP could overtake Bitcoin by 2030.
Changelly forecasts a potential climb to $115 by December 2034.
