Expert projections suggest XRP price could skyrocket beyond the $100 milestone if XRP becomes the second deflationary top 5 coin.
While XRP started with its full supply of 100 billion tokens already pre-mined, the XRP Ledger includes a burning system that destroys a small amount of XRP with every transaction, slowly cutting down its total supply. However, XRP isn’t yet a fully deflationary asset.
XRP’s Journey to a Deflationary Standard
This is because Ripple still holds a large portion of the total supply in escrow and releases a set amount each month. Notably, the system keeps supply changes predictable and prevents sudden selling pressure, but it also keeps XRP slightly inflationary for now.
XRP will only become truly deflationary once Ripple finishes releasing all tokens from escrow, leaving the burn mechanism as the only factor impacting supply.
At press time, Ripple holds about 35 billion XRP in escrow. However, the company typically unlocks 1 billion tokens monthly but relocks around 700 million, leaving 300 million newly available each month.
If this pattern continues, Ripple will use up the entire escrow in nine years and eight months, which sits around July 2035. At that point, XRP would operate under a fully deflationary model.
The burning mechanism would then be the only influence on supply, removing tiny fractions of XRP with every transaction on the ledger. This change would make XRP the second deflationary coin among the top five cryptocurrencies, joining BNB. Meanwhile, the question remains: how could this change affect XRP’s price?
To assess the potential impact, we asked Google Gemini what XRP’s price might look like once it becomes deflationary. At the time of the assessment, XRP traded for $2.55 with a market cap of $153 billion.
XRP Price as a Deflationary Token
According to Gemini, this scenario is entirely hypothetical and depends on XRP’s supply shrinking once Ripple’s escrow runs out and the burn system fully takes over.
Gemini explained that if this happens, XRP could see a strong rally due to growing demand and limited supply. It noted that the token’s price would reflect its expanding utility and transaction activity rather than just market sentiment.
Notably, in a conservative bullish outlook, Gemini suggested that if XRP’s market cap rises to $1.5 trillion, about ten times higher than now, and its circulating supply drops by roughly 10% to 54 billion tokens, the price could climb to around $27.78.
Meanwhile, in a stronger scenario, Gemini compared XRP’s future potential to BNB’s past performance. If XRP’s market cap grows to $2.5 trillion, about 16x larger than today, and its circulating supply falls by 25% to 45 billion tokens, the price could reach $55.56.
However, in an extremely bullish setup, Gemini estimated that if XRP reaches mass adoption for global payments, driving a higher burn rate, its market cap could hit $5 trillion. With the supply cut in half to 30 billion tokens, XRP could soar to roughly $166.67.
Overall, Gemini concluded that in a fully deflationary and highly active market, the XRP price could realistically land anywhere between $25 and $175.
However, this assessment does not consider that the XRP price could already be much higher by 2035. Instead, it considers the current price, with the evaluation only based on current figures.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.