$XRP at US$ 500: The Impending Supply Shock

XRP is on the verge of a supply shock that could send its price to US$ 500. Referencing insights from Edo Farina, XRP’s tokenomics reveals a scarcity that few understand but is critical to its potential.

XRP Tokenomics and Scarcity

Total Supply: 100 billion XRP exist, but most of it is locked or allocated.

Retail Circulation: According to Farina, only 1.7 billion XRP — less than 2% of the total supply — is in retail markets.

Lock-up for Utility: The remainder is in Ripple’s escrow, reserved for institutions, or integrated into systems like On-Demand Liquidity (ODL).

This small retail float makes XRP extremely scarce, and as demand increases, this limited availability becomes a key driver of price appreciation.

Why Demand Is Rising

1️⃣ Institutional Adoption: Banks, governments, and institutions are turning to XRP for cross-border settlements, aiming to replace inefficient systems like SWIFT.

2️⃣ BlackRock Interest: With XRP-based ETFs being explored, institutions can absorb limited retail supply.

3️⃣ CBDCs on XRPL: Central bank digital currencies built on the XRP ledger will create continued demand for the asset’s liquidity and bridging capabilities.

The Looming Supply Shock

With only 1.7 billion tokens accessible to retail, the growing interest from institutions could lead to a supply crunch. Retail investors will compete with deep-pocketed entities, driving up the price of XRP.

Why US$ 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.

Bottom line: XRP’s scarcity isn’t just a feature — it’s a driver of its value. As governments, banks and funds enter

XRP