Ripple — the company that developed the software that the XRP (CRYPTO: XRP) network runs on — could burn a sizeable portion of the coin's total supply.
What Happened: During a recent interview, Ripple CEO Brad Garlinghouse said that he is always open to new ideas that are good for the XRP ecosystem when asked about whether the firm would burn the coins held in its escrow. He said:
"I don't rule anything out and I think to the extent that there's things that make sense for the XRP ecosystem then certainly Ripple would look at that."
Why It Matters: According to XRP news and data website XRPArcade, there was 47.8 billion XRP locked in Ripple’s escrow as of yesterday.
According to CoinMarketCap data, this translates into nearly $66 billion, or roughly 105% of the current circulating supply or 47.8% of the total supply.
The idea of destroying this huge XRP reserve is not new.
At the end of 2020, the company's chief technology officer also admitted that the network’s nodes, validators, and the community could jointly decide to burn the escrow coins by themselves and “there would be nothing Ripple could do to stop that.”
“If the majority wants a rules change, there is nothing the minority can do to stop them,” he added.
What Else: A token burn is the process or removing a certain quantity of a token from the circulating supply, which results in the reduction of the token supply and subsequential rise in token value and price.
Price Action: XRP was traded at $1.17, 12.67% lower at press time. The current circulation supply is over $45 billion tokens.
Burning removes coins from circulation, reducing that cryptocurrency's circulating supply. This is believed to increase demand, causing a value increase.
According to data from the XRPScan website, the total number of XRP coins that have been burned so far has crossed the 12 million mark. At current market prices, this means that the community has collectively sent over $6.8 million worth of tokens to the burn address.
Can XRP reach $100? Reaching a $100 price point would mean a market capitalisation of roughly $5.2 trillion for XRP, considering the current circulating supply of about 52 billion. This would be more than four times larger than the current value of all cryptocurrencies combined.
Predicting the exact timeline for Ripple's (XRP) price to reach $1,000 per token is highly speculative and uncertain. It depends on numerous factors including regulatory developments, adoption rates, technological advancements, market conditions, and overall sentiment towards cryptocurrencies.
XRP trading would be more complicated if the coins were found to be securities, Ripple's lawyers said — and sellers might even face individual liability for trading unregistered securities. It would also be harder, according to Ripple, for businesses to accept and make payments using XRP if the tokens are securities.
In a more bullish scenario of the crypto market surging to $10 Trillion, the price of XRP could soar to a staggering $1.96, resulting in a potential 4x return for investors by 2030.
There is a finite amount of XRP. All XRP is already in existence today—no more than the original 100 billion can be created. The XRPL founders gifted 80 billion XRP, the platform's native currency, to Ripple.
How much XRP do you need to become a millionaire? So, to see $1 million in your account, you need to buy 294,117 XRP. At the current price of $0.524, the coins would cost around $154,000.
Since the lawsuit concluded, a Ripple XRP price prediction is going to be challenging to say the least. In 2025, there are some who are now calling for $2, while at the same time there are people suggesting that $5 is more likely.
It's pretty clear that XRP will never reach a price of $10,000, as the coin's market capitalization would be unrealistically large at that price. The only way 1 XRP could be worth $10,000 would be through a massive coin burn program or a redenomination of XRP.
Can it reach 35k? Yes it can but it will take some time. My reasons for it is that Gold has a market capital of roughly $11T and Silver has a market capital of $1.3T right now. If XRP has the same market capital as Silver, it will be $26.
XRP is developed as a viable substitute for #swift , with the primary objective of providing expeditious cross-border payment solutions at reduced transaction expenses compared to its industry counterparts.
The more transactions that are executed, the more XRP are burned. In theory, this has an impact on supply, but at just 0.00001 XRP per transaction, there would need to be major widespread adoption of XRP to make a dent in its overall supply.
Schwartz detailed Ripple's ability to achieve the effect of burning escrows by "blackholing" the associated accounts. He explained that Ripple could unilaterally enact measures to prevent XRP from these escrows entering circulation by effectively rendering the associated accounts inaccessible.
Address: 747 Lubowitz Run, Sidmouth, HI 90646-5543
Phone: +99513241752844
Job: Design Supervisor
Hobby: Digital arts, Lacemaking, Air sports, Running, Scouting, Shooting, Puzzles
Introduction: My name is Delena Feil, I am a clean, splendid, calm, fancy, jolly, bright, faithful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
