XRP is on the brink of a supply shock that could drive its price to $500. Referencing insights from Edo Farina, XRP’s tokenomics reveal a scarcity few understand but is critical to its potential.
XRP Tokenomics and Scarcity
Total Supply: 100 billion XRP exists, but most are locked or allocated. Retail Circulation: According to Farina, only 1.7 billion XRP—less than 2% of the total supply—are in retail markets. Locked for Utility: The rest is either in Ripple’s escrow, reserved for institutions, or integrated into systems like On-Demand Liquidity (ODL).
This tiny retail float makes XRP extremely scarce, and as demand rises, this limited availability becomes a key driver for price appreciation.
Why Demand is Surging
1️⃣ Institutional Adoption: Banks, governments, and institutions are turning to XRP for cross-border settlements, aiming to replace inefficient systems like SWIFT.
2️⃣ BlackRock’s Interest: With XRP-based ETFs being explored, institutions could soak up the limited retail supply.
3️⃣ CBDCs on XRPL: Central Bank Digital Currencies built on XRP’s ledger will create ongoing demand for the asset’s liquidity and bridging capabilities.
The Imminent Supply Shock
With only 1.7 billion tokens accessible to retail, institutions’ growing interest could lead to a supply crisis. Retail investors will compete with deep-pocketed entities, driving XRP’s price higher.
Why $500 is Realistic: Scarcity-driven assets like Bitcoin have seen exponential price increases when demand outstrips supply. For XRP, its finite retail supply and growing institutional utility make a similar trajectory plausible.
The Bottom Line: XRP’s scarcity isn’t just a feature—it’s a driver of its value. As governments, banks, and funds move in, retail investors may lose their chance.
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