XRP could significantly revalue: The demand factor and supply reduction

XRP is currently trading around $2.06, well below previous highs. However, a deep analysis of the XRP Ledger reveals revaluation opportunities based on two key dynamics: constant token burning and the institutional demand factor. With a fixed supply of 100 billion XRP and a deflationary mechanism in place, some analysts see the potential for significantly higher prices by 2035.

The Burning Mechanism: A Quiet but Consistent Force

The XRP Ledger systematically burns tokens through transaction fees. Currently, burns average around 5,000 XRP daily, which amounts to approximately 1.8 million annually. Although it seems small, the trend is cumulative. Maintaining this pace, nearly 20 million XRP would be eliminated from the total supply by 2035.

However, the scenario changes dramatically if network activity accelerates. If burns increase to 15,000-20,000 tokens daily — a three to fourfold increase — more than 100 million XRP could be removed by 2035. A reduction of this magnitude, combined with existing demand, would suggest prices in the range of $12 to $16.

The Demand Factor: The True Price Catalyst

Supply dynamics are important, but the demand factor determines the actual price movement. In crypto, prices rarely sustain solely through scarcity. For XRP, demand catalysts include:

• Institutional adoption: Integration into corporate payment systems
• Volume on RippleNet: Real transactions across the payment network
• Growth of tokenized assets: Expansion of the XRP Ledger ecosystem

If institutional adoption expands significantly, especially in corporate treasury solutions and financial settlements, the combination of increased demand and reduced supply could greatly amplify appreciation.

Proportional Valuation Scenarios

A valuation analysis suggests various scenarios:

Conservative scenario: If supply is reduced by 40% while maintaining current demand, XRP would hover around $4.17, representing a 49% increase.

Moderate scenario: A 50% increase in demand alongside a 40% reduction in supply could push XRP toward $6.25.

Bullish scenario: If demand doubles under the same deflationary conditions, prices could surpass $8.

The Reality of Deflation: Slow but Persistent

A 40% reduction in supply by 2035 remains an ambitious goal. Burns would need to accelerate significantly compared to current levels. To achieve a supply shock of this magnitude, XRP Ledger transaction activity would have to increase exponentially, driving higher fees and faster burning speeds.

Despite this, XRP’s constant deflationary model provides a fundamental basis for long-term appreciation. Even moderate increases in daily burns, coupled with growing adoption, reinforce the scarcity narrative.

Analyst Projections: More Ambitious Perspectives

Beyond supply dynamics, several analysts have projected much higher price targets for 2035. Some market experts suggest XRP could position itself as the leading cryptocurrency, potentially surpassing Bitcoin. These projections include XRP prices exceeding $300.

More conservatively, some exchanges project XRP could reach $115 by December 2034.

Conclusion: Converging Demand and Scarcity Factors

The future of XRP will depend on the convergence of demand factors and supply contraction. While token burning provides a solid deflationary foundation, demand catalysts — institutional adoption, payment expansion, and network growth — will be the true drivers of revaluation. If both forces align, XRP could see significant appreciation over the next decade.